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TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDFINANCIALSTATEMENTSIncludingReportofIndependentAudftorsDecember31,2018and2017 TABLEOFCONTENTSReportofIndependentAuditorsIManagement’sDiscussionandAnalysis4FinancialStatements10ConsolidatedStatementsofNetPosition11ConsolidatedStatementsofRevenues,ExpensesandChangesinNetPosition12ConsolidatedStatementsofCashFlowsI3NotestoFinancialStatements15RequiredSupplementaryInformation49CostSharingDefinedBenefitPensionPlans50ScheduleofChangesinNetOPEBLiabilityandRelatedRatios52SupplementaryInformation56ConsolidatingStatementofNetPosition57ConsolidatingStatementofRevenues,ExpensesandChangesinNetPosition59ConsolidatingStatementofCashFlows60 ®ReportofIndependentAuditorsTheBoardofDirectorsTruckeeDonnerPublicUtilityDistrictReportontheFinancialStatementsWehaveauditedtheaccompanyingconsolidatedfinancialstatementsofTruckeeDonnerPublicUtilityDistrict(thecLDistrict)whichcomprisetheconsolidatedstatementsofnetpositionasofDecember31,2018and2017,andtherelatedconsolidatedstatementsofrevenues,expensesandchangesinnetposition,andcashflowsfortheyearsthenended,andtherelatednotestotheconsolidatedfinancialstatements.Management’sResponsibihtyforthefinancialStatementsManagementisresponsibleforthepreparationandfairpresentationoftheseconsolidatedfinancialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfairpresentationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.AuditorsResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.WeconductedourauditsinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards,issuedbytheComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheconsolidatedfinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationoftheconsolidatedfinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.Page1 OpinionInouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionofTruckeeDonnerPublicUtilityDistrictasofDecember31,2018and2017,andtheresultsofitsoperationsanditscashflowsfortheyearsthenendedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.EmphasisofMatterAsdiscussedinNoteIofthefinancialstatements,theDistrictadoptedtheprovisionsofGASBStatementNo.75,AccountingandFinancialReportingforPostemploymentBenefitsotherthanPensions,effectiveJanuary1,2018.Thebeginningofyearnetpositionhasbeenadjustedforthischange.Ouropinionisnotmodifiedinrespecttothismatter.OtherMattersRequiredSupplementaryInformationAccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethatmanagement’sdiscussionandanalysis,thescheduleoftheDistrict’sproportionateshareofthenetpensionliability,thescheduleofcontributions,andretireehealthplanfundinghistory,bepresentedtosupplementthebasicconsolidatedfinancialstatements.Suchinformation,althoughnotapartofthebasicconsolidatedfinancialstatements,isrequiredbytheGovernmentalAccountingStandardsBoardwhoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicconsolidatedfinancialstatementsinanappropriateoperational,economic,orhistoricalcontext.WehaveappliedcertainlimitedproceduresintherequiredsupplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethodsofpreparingtheinformationandcomparingtheinformationforconsistencywithmanagement’sresponsestoourinquiries,thebasicconsolidatedfinancialstatements,andotherknowledgeweobtainedduringourauditofthebasicconsolidatedfinancialstatements.Wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideanyassurance.SupplementaryInformationOurauditswereconductedforthepurposeofforminganopinionontheconsolidatedfinancialstatementsthatcollectivelycomprisetheDistrict’sconsolidatedfinancialstatements.Thescheduleofexpendituresoffederalawards,asrequiredbyTitle2U.S.CodeofFederalRegulations(CFR)Part200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards,andtheconsolidatingstatementsofnetposition,statementsofrevenues,expensesandchangesinnetpositionandcashflowsasofandfortheyearendedDecember31,2018,arepresentedforpurposesofadditionalanalysisandarenotarequiredpartofthebasicconsolidatedfinancialstatements(collectively,thesupplementaryinformation).Thesupplementaryinformationistheresponsibilityofmanagementandwasderivedfromandrelatesdirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicconsolidatedfinancialstatements.Suchinformationbeensubjectedtotheauditingproceduresappliedintheauditofthebasicconsolidatedfinancialstatementsandcertainadditionalprocedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicconsolidatedfinancialstatementsortothebasicconsolidatedfinancialstatementsthemselves,andotheradditionalproceduresinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,thesupplementaryinformation,asdescribedabove,isfairlystated,inallmaterialrespects,inrelationtothebasicconsolidatedfinancialstatementsasawhole.Page2 OtherReportingRequiredbyGovernmentAuditingStandardsInaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdated_______2019onourconsiderationoftheDistrict’sinternalcontroloverfinancialreportingandonourtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.Thepurposeofthatreportissolelytodescribethescopeofourtestingofinternalcontroloverfinancialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheDistrict’sinternalcontroloverfinancialreportingoroncompliance.ThatreportisanintegralpartofanauditperformedinaccordancewithGovernmentAuditingStandardsinconsideringtheDistrict’sinternalcontroloverfinancialreportingandcompliance.Portland,Oregon______,2019Page3 TRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017MANAGEMENT’SDISCUSSIONANDANALYSISAsfinancialmanagementoftheTruckeeDonnerPublicUtilityDistrict(theDistrict),weofferreadersofthesefinancialstatementsthisnarrativeoverviewandanalysisofthefinancialactivitiesoftheDistrictfortheyearsendedDecember31,2018and2017.Thisdiscussionandanalysisisdesignedtoassistthereaderinfocusingonthesignificantfinancialtopics,provideanoverviewoftheDistrict’sfinancialactivityandidentifychangesintheDistrict’sfinancialposition.Weencouragereaderstoconsidertheinformationpresentedhereinconjunctionwiththatpresentedwithinthebasicfinancialstatements.Thereadershouldtaketimetoreadandevaluateallsectionsofthisreport,includingthefootnotesandothersupplementaryinformationthatisprovided,inadditiontothismanagementdiscussionandanalysis.FINANCIALHIGHLIGHTSTheDistrict’scurrentassetsincreased$1.7million(3.8%)from$43.8millionatDecember31,2017to$45.5millionatDecember31,2018,predominantlyduetohigherthananticipatedrevenuesfortheElectricUtility.TheDistrict’stotalnetpositionincreased$6.0million(7.1%)from$84.9millionatDecember31,2017,to$90.9millionatDecember31,2018.Thetotalincreaseinnetpositionwas$9.4million,primarilyduetohigherthananticipatedrevenuesfortheElectricUtilitycoupledwithstrongcapitalcontributionsforbothElectricandWater.ThesecontributionsarerelatedtoinfrastructureconstructedfornewdevelopmentwithintheDistrict’sservicearea.Thetotalincreaseinnetpositionfromoperatingactivitiesof$9.4millionwasthenoffsetbyareductioninnetposition.Thereductioninnetpositionatthebeginningof2018of$3.4millionisduetoachangeinaccountingprincipletocomplywithGASBstatement75forOtherPostemploymentBenefitreporting.(Seenote9and15).Totaloperatingrevenueswere$37.7millionin2018,$38.3millionin2017,and$35.6millionin2016.ElectricandWaterUtilitiesbothimplementeda3%rateincreasein2018.Otheroperatingrevenuesin2017includeCaIOESandFEMAreimbursementfundsfromtheextremewinterstormsduringJanuaryandFebruary2017.However,2018revenueswerehigherthananticipatedontheElectricUtilitysideeventhoughtheDistrictexperiencedamilderwintercomparedto2017.Waterrevenuesalsoexceededexpectationsasirrigationpatternsforconsumersstartedearlierthan2017duetothemilderwinterin2018.OperatingexpensesoftheDistrictdecreased$1.6million(4.5%)from$35.7millionin2017to$34.0millionin2018.Operatingexpensesin2017fortheElectricUtilityincludedalloftheextraexpensesassociatedwiththeextremewinterstormsthatoccurredinQI,andweresubsequentlyreimbursedbyFEMAandCaIOESin2017.Non-operatingrevenuesincreased4.6%at$4.0millionin2018comparedto$3.8millionin2017dueprimarilytoanincreaseininvestmentincome.Non-operatingexpensesdecreased3.7%from$2.9millionin2017to$2.8millionin2018primarilyduetoadecreaseininterestexpense.Nonewdebtwasincurredin2018.OVERVIEWOFTHEFINANCIALSTATEMENTSThisreportincludesManagement’sDiscussionandAnalysis,ReportofIndependentAuditors,theBasicFinancialStatements,(whichincludesthenotestothefinancialstatements),RequiredSupplementaryInformationandadditionalSupplementaryInformation.Seeaccompanyingauditors’report.Page4 TRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017REQUIREDFINANCIALSTATEMENTSThefinancialstatementsoftheDistrictaredesignedtoprovidereaderswithabroadoverviewoftheDistrict’sfinancessimilartoaprivate-sectorbusiness.TheyhavebeenpreparedusingtheaccrualbasisofaccountinginaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP).Underthisbasisofaccounting,revenuesarerecognizedintheperiodinwhichtheyareearnedandexpensesarerecognizedintheperiodinwhichtheyareincurred,regardlessofthetimingofrelatedcashflows.Thesestatementsoffershort-termandlong-termfinancialinformationabouttheDistrict’sactivities.Thereportingentityconsistsoftheprimarygovernment,whichprovidestwoutilities(electricutilityandwaterutility),andtheblendedcomponentunits.Furtherdetailsaboutthecomponentunitsareprovidedinnote1(A).TheConsolidatedStatementofNetPositionpresentsinformationonalloftheDistrict’sassets,deferredoutflowsofresourcesandliabilities,anddeferredinflowsofresourcesandprovidesinformationaboutthenatureandamountsofinvestmentsinresources(assets)andtheobligationstoDistrictcreditors(liabilities).Italsoprovidesthebasisforcomputingrateofreturn,evaluatingthecapitalstructureoftheDistrict,andassessingtheliquidityandfinancialflexibilityoftheDistrict.Allofthecurrentyear’srevenuesandexpensesarereportedintheConsolidatedStatementsofRevenues,Expenses,andChangesinNetPosition.ThisstatementprovidesameasurementoftheDistrict’soperationsoverthepastyearandcanbeusedtodeterminewhethertheDistricthassuccessfullyrecoveredallitscoststhroughitsratesandothercharges.TheConsolidatedStatementofCashFlowsprovidesrelevantinformationabouttheDistrict’scashreceiptsandcashpaymentsduringthereportingperiod.Thisstatementreportscashreceiptsandcashpaymentsresultingfromoperating,non-capitalfinancing,capitalandrelatedfinancing,andinvestingactivities.Whenusedwithrelateddisclosuresandinformationintheotherfinancialstatements,thestatementofcashflowsshouldprovideinsightinto(a)theDistrict’sabilitytogeneratefuturenetcashflows,(b)theDistrict’sabilitytomeetitsobligationsastheycomedue,(c)theDistrict’sneedsforexternalfinancing,(d)thereasonsfordifferencesbetweenoperatingincomeandassociatedcashreceiptsandpayments,and(e)theeffectsontheDistrict’sfinancialpositionofbothitscashanditsnon-cashinvesting,capital,andfinancingtransactionsduringtheperiod.ThechangesincashbalancesareanimportantindicatoroftheDistrict’sliquidityandfinancialcondition.TheNotestotheFinancialStatementsprovideadditionalinformationthatisessentialtoafullunderstandingofthedataprovidedinthebasicfinancialstatements.Thisincludesbutisnotlimitedto,significantaccountingpolicies,significantfinancialstatementbalancesandactivities,materialrisks,commitmentsandobligations,andsubsequentevents,asapplicable.Seeaccompanyingauditors’report.Page5 DISTRICTHIGHLIGHTSTRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017ThecondensedfinancialstatementsatDecember31,2018,2017,and2016arepresentedbelow.NETPOSITIONNetinvestmentincapitalassetsRestrictedfordebtserviceUnrestrictedTotalNetPositionTOTALLIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIONIn2018,theDistrict’scurrentassetsincreased$1.7million,predominantlyduetoincreasedcashreservesassociatedwiththeElectricUtility.TheDistrictcontinuedtofocusoncapitalassetreplacementsincludingmainlinereplacement,meterreplacements,themainbuildingcustomerserviceareaimprovementproject,andSCADAimprovementsandreplacementsincreasingnetcapitalassetsbyatotalof$7.0millionin2018.OtherLongTermassetsdecreased$1.2millionduetothescheduledcollectionofspecialassessmentsreceivable.NetLongTermdebtdecreased$4.4million,duetoannualreductionofexistingdebt.Seenote5fordetailsonremainingdebt.Nonewdebtwasissuedin2018.“Restrictedfordebtservice”representsamountsrestrictedforpaymentsrelatedtooutstandingrevenuebonds.Seeaccompanyingauditors’report.ASSETSANDDEFERREDOUTFLOWSOFRESOURCESCurrentassetsNon-currentassets:Capitalassets,netRestrictedassetsOtherlong-termassetsTotalAssetsDeferredoutflowsofresources201820172016$45,472,272$43,809,466$38,675,596130,173,550I753,2752,605,968180,005,065123,114,0741,818,5133,848,264172,590,317Increase(Decrease)2018-2017$1,662,8067,059,476(65,238)(1,242,296)7,414,748(1,080,181)123,602,3311,876,0324,618,396168,772,3554,764,5643,270,6614,350,842TOTALASSETSANDDEFERREDOUTFLOWSOFRESOURCES$183,275,726LIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIONCurrentliabilitiesNon-currentLiabilities$176,941,159$173,536,919$6,334,567$9,734,621$9,170,662$8,898,434$563,959DeferredinflowsofresourcesLong-termdebt,netofcurrentportion59,647,06264,032,29768,088,323(4,385,235)Netpensionliability11742,13711975,65510,250,329(233,518)OPEBliability4,408,7291,116,568719,2173,292,161Unearnedrevenues6,569,6325,236,4024,735,3481,333,230TotalLiabilities92,102,1819153158492,691651570,597259,666551,93266,843,64255,267,0869,742,7419,288,95014,327,49620,301,60790,913,87984,857,6431,597,126(292,266)52,052,1488,773,00918,422,98579,248,14211,576,556453,791(5,974,111)6,056,236$183,275,726$176,941,159$173,536,919$6,334,567Page6 TRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017TheDistricthadincomebeforecapitalcontributionsof$4.7million,$3.5million,and$3.0millionfortheyearsendedDecember31,2018,2017,and2016,respectively.ChangesintheDistrict’snetpositioncanbedeterminedbyreviewingthefollowingCondensedRevenues,Expenses,andChangesinNetPosition.Increase(Decrease)2018201720162018-2017Salestoconsumers$35,486,412$34,462,146$33,026,587$1,024,266Otheroperatingrevenues2,198,6053,873,2072,577,122(1,674,602)TotalOperatingRevenues37,685,01738,335,35335,603,709(650,336)Operatingexpenses34,092,08635,702,13133,101672(1610,045)OperatingIncome3,592,9312,633,2222,502,037959,709Non-operatingrevenues(expenses)1,162,050879,451514,107282,599Incomebeforecapitalcontributions4,754,9813,512,6733,016,1441,242,308Capitalcontributions,net4,652,7202,096,8281,699,1102,555,892Changeinnetposition9,407,7015,609,5014,715,2543,798,200NetPosition,BeginningofYear84,857,64379,248,14274,532,8885,609,501Less:Festatementtorchangeinaccountingprincip(3,35],4b5)--(3,351,4b5)NetPosition,BeginningofYear,asadjusted81,506,17879,248,14274,532,8882,258,036NETPOSITION,ENDOFYEAR$90,913,879$84,857,643$79,248,142$6,056,236In2018theDistrictimplementedGovernmentalAccountingStandardsBoard(GASB)StatementofGovernmentalAccountingStandardsNo.75“AccountingandFinancialReportingforPostemploymentBenefitsotherthanPensions”(GASBNo.75).TheprimaryobjectiveofGASBNo.75istoimproveaccountingandfinancialreportingforpostemploymentbenefits.UnderGASBNo.75,theDistrictisrequiredtoreportthenetotherpostemploymentbenefitsliabilityanddeferredinflowsandoutflowsinthestatementofNetPosition.TheDistrict’snetpositionatthebeginningof2018wasreduced$3.4millionforthisnewstandard.(SeeNote9and15).Seeaccompanyingauditors’report.Page7 CAPITALASSETSTRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017AsofDecember31,2018,2017,and2016,theDistricthad$130.1million,$123.1million,and$123.6million,respectively,investedinavarietyofcapitalassets,netofaccumulateddepreciation.Asummaryofcapitalassetsisreflectedinthefollowingschedule.CAPITALASSETSElectricdistributionfacilitiesWaterdistributionfacilitiesGeneralplantSub-totalsLess:AccumulateddepreciationNetofaccumulateddepreciationConstructionworkinprogressNetcapitalassets2018$64,204,691116,378,59316,513,295197,096,579(74,092,843)123,003,7367,169,814$130,173,5502017$60,416,920I12,596,74715,782,620188,796,287(68,563,235)120,233,0522,881,021$123,114,0732016$58,345,690108,860,82515,062,278182,268,793(63,372,738)118,896,0554,706,276$123,602,331Netcapitalassets(additions,lessretirementsanddepreciation)increased$7.0million.TheDistrictended2018withincreasedconstructionworkinprogressof$7.2millioncomparedto$2.9millionin2017;thisincludesthemainlinereplacement,meterreplacements,andmainbuildingcustomerserviceareaimprovementproject.ElectricandWaterUtilitydistributionassetsin2018werebothreplacedataslightlyfasterpacethanaccumulateddepreciation.LONG-TERMDEBTLong-termdebtincludesrevenuebondsandnotespayable.AtDecember31,2018,2017,and2016,theDistricthad$59.6million,$64.0million,and$68.1million,respectively,inlong-termdebtoutstanding,netcurrentmaturities.In2018and2017,theDistrictdidnotenterintoanynewdebtagreementsandtheoveralldecreaseinlong-termdebtwasduetoscheduleddebtpayments.ECONOMICFACTORSANDNEXTYEARSBUDGETSANDRATESTheDistrictoperatesonatwoyearbudget.TheFY18&FY19BoardapprovedBudgetincludesanassumptionforgrowthinfiscalyear2019of1%,ConsistentwithwhattheDistrictexperiencedinfiscalyear2018.Revenueprojectionsforfiscalyear2019includerateincreasesof3%forbothElectricandWater.RatesbyrateclasscanbefoundontheDistrict’swebsiteatwvwtdpud.org.ExpendituresforElectricandWaterexcludingdebtservice,wereprojectedtoincreaseapproximately3%comparedtofiscalyear2018budgetedexpenditures.Seeaccompanyingauditors’report.Page8 TRUCKEEDONNERPUBLICUTILITYDISTRICTMANAGEMENT’SDISCUSSIONANDANALYSISDecember31,2018and2017CONTACTINGTHEDISTRICTSFINANCIALMANAGEMENTThefinancialreportisdesignedtoprovidereaderswithageneraloverviewoftheDistrictsfinancesandtodemonstratetheDistrict’saccountabilityforthemoneyitreceives.Ifyouhavequestionsaboutthisreportorneedadditionalfinancialinformation,contact:TruckeeDonnerPublicUtilityDistrictAttn:Treasurer11570DonnerPassRoadTruckee,CA96161Seeaccompanyingauditors’report.Page9 FINANCIALSTATEMENTS TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDSTATEMENTSOFNETPOSITIONDecember31,2018and2017ASSETSANDDEFERREDOUTFLOWSOFRESOURCES_________CURRENTASSETSCashFundsOperatingDesignatedResfficted______________TotalCashFundsAccountsrecehble,netUnbilledre’nuesAccruedinterestrecei’ableMaterialsandsuppliesPrepaidexpensesTotalCurrentAssetsNON-CURRENTASSETSOtherNon-CurrentAssetsRestrictedinstmentfundSpecialassessmentsrecekableOtherTotalOtherNon-CurrentAssetsI7532752,294810311,1574,359,2421,818,5133,005,178843,0865,666,777CAPITALASSETSUtilityplantAccumulateddepreciationConstructionworkinprogressTotalCapitalAssetsTOTALASSETSANDDEFERREDOUTFLOWSOFRESOURCES3,651,391-0-576,778_____________I22,673____________4,350,842$183,275,726$176,941,159Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.20182017Other$9,947,858I3,958,2508,233,75632,139,8648,637,4362,907,072101,616884,238684,816117,23045,472,272$8,986,61213,710,3697,846,35630,543,3379,155,0162,629,45776,932677,896633,19193,63743,809,466DEFERREDOUTFLOWSOFRESOURCESPensionOPEBUnamortizedlossonrefundingUnamortizedredemptionpremiumTotalDeferredOutflowsofResources2,286,573344,700543,97695,4123,270,661I97,096,579(74,092,843)7,169,814130,173,550I88,796,288(68,563,235)2,881,021123,114,074Page11 TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDSTATEMENTSOFNETPOSITIONDecember31,2018and2017LIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIONCURRENTLIABILITIESOtherLiabilitiesAccountspayableCustomerdepositsOtherTotalOtherLiabilitiesCurrentLiabilitiesPayableFromRestrictedAssetsCurrentportionoflong-termdebtAccruedinterestpayableTotalCurrentLiabilitiesPayablefromRestrictedAssetsTotalCurrentLiabilities2018$3,173,938448,968I035,2354,658,1414,263,421813,0595,076,4809,734,6212017$2,345,746488,196994,6153,828,5574,439,214902,8915,342,1059,170,662NON-CURRENTLIABILITIESLong-termdebt,netofdiscountsandpremiumsNetpensionliabilityNetOPEBliabilityInstallmentloansUnearnedre’enuesTotalNon-CurrentLiabilities59,610,46311,742,1374,408,72936,5996,569,63282,367,56063,984,552II975,6551,116,56847,7455,236,40282,360,922TotalLiabilities92,102,18191531,584DEFERREDINFLOWSOFRESOURCESPensionOPEBTotalDeferredInflowsofResources244,59715,069259,666551,932-0-551,932NETPOSITIONNetinstmentincapitalassetsRestrictedfordebtsenAceUnrestctedTotalNetPosition66,843,6429,742,74114,327,49690,913,87955,267,0869,288,95020,301,60784,857,643LIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITION$183,275,726$176,941,159Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.Page12 THISPAGEISINTENTIONALLYLEFTBLANK TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDSTATEMENTSOFCASHFLOWSDecember31,2018and2017OPERATINGREVENUESSatestocustomersStandbyfeesCapandtradeproceedsOtherTotalOperatingRevenuesOPERATINGEXPENSESPurchasedpowerOperationsandmaintenanceConsumerservicesAdministrationandgeneralDepreciationTotalOperatingExpensesOperatingIncomeNON-OPERATINGREVENUE(EXPENSES)SpecialtaxrevenueInvestmentincomeInterestexpenseAmortizationOthernon-operatingrevenuesOthernon-operatingexpensesGainondispositionofassetsTotalNon-OperatingRevenue(Expenses)IncomeBeforeContributionsCAPITAL&OTHERCONTRIBUTIONSCHANGEINNETPOSITIONNetPosition-BeginningofYear,beforeadjustmentLess:RestatementforchangeinaccountingprincipalNetPosition-BeginningofYear,asadjustedNETPOSITION-ENDOFYEAR2018$35,486,412143,320I186,320868,96537,685,01711,001,8589,056,2632,152,8175,002,2886,878,86034,092,0863,592,9313,268,849694,432(2,753,906)(38,250)21,332(31,691)1,2841,162,0504,754,9814,652,7209,407,70184,857,643(3,351,465)81,506,178$90,913,8792017$34,462,146154,970I140,3722,577,86538,335,35311,327,300I0,241,9552,593,0055,008,2316,531,64035,702,1312,633,2223,342,077420,490(2,868,084)(38,250)42,057(26,377)7,538879,4513,512,6732,096,8285,609,50179,248,14279,248,142$84,857,643Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.Page12 TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDSTATEMENTSOFCASHFLOWSDecember31,2018and201720182017CASHFLOWSFROMOPERATINGACTIVITIESRecei’iedfromcustomersPaidtosuppliersforgoodsandserAcesPaidtoemployeesforserAcesNetCashFlowsfromOperatingActhAties$38294,792(18,317,973)(7,139,320)12,837,499$37,790,910(20,134,075)(7,486,250)10,170,585CASHFLOWSFROMNONCAPITALFINANCINGACTIVITIESPrincipalpaymentsonlong-termdebtInterestpaymentsonlong-termdebtNetCashFlowsfromNoncapitalFinancingActhAties(1,269,000)(160,464)(1,429,464)(404,000)(63,590)(467,590)CASHFLOWSFROMCAPITALANDRELATEDFINANCINGACTIVITIESCapitalexpendituresforutilityplantCostofdisposalofpropertynetofsakiageCapitalcontributions,connectionandfacilityfeesSpecialassessmentsreceiptsSpecialtaxreceiptsPrincipalpaymentsonlong-termdebtInterestpaymentsonlong-termdebtCashFlowsFromCapitalandRelatedFinancingActivfties(11,609,527)(125,836)3,573,769710,3682,881,818(3,297,233)(2,656,256)(10,522,897)(5,381,950)(126,018)I805,481687,6983,211,853(3,347,860)(2,749,920)(5,900,716)CASHFLOWSFROMINVESTINGACTIVITIESInterestincomerecekedCashFlowsfromlnestingActhAties726,597726,5971,611,735531,551531,551CASHANDCASHEQUIVALENTS—BeginningofYearCASHANDCASHEQUIVALENTS-ENDOFYEARNONCASHCAPITALANDRELATEDFINANCINGACTIVITIES30,594,78426,260,954$32,206,519$30,594,784De’.eloperandcustomeraddedcapitalassetsRecognitionofpriorperiodunearnedre’ienues$2,379,814$4,028,393$871,918$3,038,924Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.NetChangeinCashandCashEquivalents4,333,830Page13 TRUCKEEDONNERPUBLICUTILITYDISTRICTCONSOLIDATEDSTATEMENTSOFCASHFLOWSDecember31,2018and2017RECONCILIATIONOFOPERATINGINCOMETONETCASHFLOWSFROMOPERATINGACTIVITIESOperatingincomeNoncashitemsincludedinoperatingincomeDepreciationandamortizationDepreciationchargedtootheraccountsChangesinassetsandliabilitiesAccountsreceivableandunbilledre’.enuesMaterialsandsuppliesPrepaidexpensesandothercurrentassetsAccountspayableCustomerdepositsDeferredPensionContributions-GASB68OthercurrentliabilitesNETCASHFLOWSFROMOPERATINGACTIVITES$12,837,499$10,170,585RECONCILIATIONOFCASHANDCASHEQUIVALENTSTOTHEBALANCESHEETOperatingDesignatedRestrictedfunds-currentRestrictedfunds-non-currentTotalCashandlrnestments$9,947,858I3,958,2508,233,756I753,27533,893,139$8,986,61213,710,3697,846,3561,818,51332,361,850Less:Long-termirniestmentsMarktomarketadjustments(1,698,880)12,260(1,698,880)(68,186)TOTALCASHANDCASHEQUIVALENTS$32,206,519$30,594,784Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.20182017$3,592,931$2,633,2226,878,870178,114649,002(206,340)(51,625)828,192(39,228)435,033572,5506,531,640344,042(592,348)(20,915)(173,927)(160,769)20,0271,431,141I58,472Page14 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI-ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESA.ORGANIZATIONTheTruckeeDonnerPublicUtilityDistrict(theDistrict)wasformedandoperatesundertheStateofCaliforniaPublicUtilityDistrictAct.TheDistrictisgovernedbyaboardofdirectorswhichconsistsoffiveelectedmembers.TheDistrictprovideselectricandwaterservicetoportionsofNevadaandPlacerCountiesdescribedasTruckee.Theelectricandwaterserviceoperationsareseparatelymaintainedandoperated.ThesefinancialstatementsreflectthecombinedelectricandwateroperationsoftheDistrict.Allsignificanttransactionsbetweenelectricandwateroperationshavebeeneliminated.Theseeliminationsincludepowerpurchasesandrentforsharedfacilities.TheDistrict’sblendedcomponentunitsconsistoforganizationswhoserespectivegoverningboardsarecomprisedentirelyofthemembersoftheDistrict’sBoardofDirectors.TheseorganizationsarereportedasiftheyareapartoftheDistrict’soperations.Theentitiesarelegallyseparate,however,inthecaseoftheTruckeeDonnerPublicUtilityDistrictFinancingCorporation,financialsupporthasbeenpledgedandfinancialandoperationalpoliciesmaybesignificantlyinfluencedbytheDistrict.ThefollowingisadescriptionoftheDistrict’sblendedcomponentunits:TruckeeDonnerPublicUtilityDistrictFinancingCorporationisalegalentitythatwascreatedtoissueandadministerCertificatesofParticipationonbehalfoftheDistrict.(Seenote5).TruckeeDonnerPublicUtilityDistrictCommunityFacilitiesDistrictNo.03-7(OldGreenwood)isalegalentitycreatedtoissuespecialtaxbondstofinancevariouspublicimprovementsneededtodeveloppropertylocatedwithinOldGreenwood.(Seenote7).TruckeeDonnerPublicUtilityDistrictCommunityFacilitiesDistrictNo.04-1(Gray’sCrossing)isalegalentitycreatedtoissuespecialtaxbondstofinancevariouspublicimprovementsneededtodeveloppropertylocatedwithinGray’sCrossing.(Seenote7).Separatestandalonefinancialstatementsarenotavailablefortheblendedcomponentunitsdescribedabove.Unlessnoted,disclosuresrelatingtothecomponentunitsarethesameasfortheDistrict.B.ACCOUNTINGPOLICIESThefinancialstatementsoftheDistricthavebeenpreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.TheGovernmentalAccountingStandardsBoard(GASB)istheacceptedstandardsettingbodyforestablishinggovernmentalaccountingandfinancialreportingprinciples.Thefinancialstatementsarereportedusingtheeconomicresourcesmeasurementfocusandtheaccrualbasisofaccounting.Undertheaccrualbasisofaccounting,revenuesarerecognizedwhenearnedandexpensesarerecordedwhentheliabilityisincurredoreconomicassetused.Revenues,expenses,gains,losses,assetsandliabilities,thatarearesultofexchangeandexchangeliketransactions,arerecognizedwhentheexchangetakesplace.Page15 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI—ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)C.USEOFESTIMATESPreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.D.CASHANDCASHEQUIVALENTSForthepurposeoftheaccompanyingstatementofcashflows,theDistrictconsidersallhighlyliquidinstrumentswithoriginalmaturitiesofthreemonthsorlesswhenpurchasedtobecashequivalentsandareshowninthefinancialstatementsas“CashFunds”.E.INVESTMENTSTheDistrictpoolscashandinvestments.TheDistrict’sinvestmentpolicyallowsforinvestmentsininstrumentspermittedbytheCaliforniaGovernmentCodeand/ortheinvestmentspermittedbythetrustagreementsonDistrictfinancing.TheDistrict’sinvestmentpolicycontainsprovisionsintendedtolimittheDistrict’sexposuretointerestraterisk,creditrisk,andconcentrationofcreditrisk.Investmentincomefrompooledinvestmentsisallocatedtoallfundsinthepool.Interestisallocatedonthebasisofmonthendcashamountsforeachfundasapercentageofthetotalbalance.TheDistrictcategorizesthefairvaluemeasurementsofitsinvestmentsbasedonthehierarchyestablishedbygenerallyacceptedaccountingprinciples.Thefairvaluehierarchy,whichhasthreelevels,isbasedonthevaluationinputsusedtomeasureanassetsfairvalue:LevelIinputsarequotedpricesinactivemarketsforidenticalassets;Level2inputsaresignificantotherobservableinputs;Level3inputsaresignificantunobservableinputs.TheDistrictdoesnothaveanyinvestmentsthataremeasuredusingLevel3inputs.F.DESIGNATEDASSETSTheboardhasdesignatedcertainresourcesforfuturecapitalprojects,replacements,andoperationalneeds.G.RESTRICTEDASSETSRestrictedassetsareassetsrestrictedbythecovenantsoflong-termfinancialarrangementsorotherthirdpartylegalrestrictions.Restrictedassetsareusedinaccordancewiththeirrequirementsandwherebothrestrictedandunrestrictedresourcesareavailableforuse,restrictedresourcesareusedfirstandthenunrestrictedastheyareneeded.H.ACCOUNTSRECE1VABLEANDALLOWANCESFORDOUBTFULACCOUNTSAccountsreceivablearerecordedattheinvoicedamountandarereportednetofallowancesfordoubtfulaccountsof$18,100and$25,200for2Ol8and2017,respectively.Receivablesareconsideredpastdueafter30daysandroutinecollectioneffortsbegin.DistrictCodeallowsfortheTreasurertowriteoffdelinquentaccountbalancesupto0.17%oftheamountsbilled.Thiswriteoffprocessoccurssemi-annually.Page16 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI—ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)IMATERIALSANDSUPPLIESMaterialsandsuppliesarerecordedataveragecost.J.DEBTPREMIUM,BONDISSUANCECOSTS,ANDDISCOUNTSOriginalissueandreacquiredbondpremiumsanddiscountsrelatingtorevenuebondsareamortizedoverthetermsoftherespectivebondissuesusingtheeffectiveinterestmethod.Debtissuancecostsareexpensedintheperiodincurred.K.SPECIALASSESSMENTRECEIVABLESpecialassessmentreceivablerepresentamountsduefrompropertyownerswithintheDonnerLakeAssessmentDistrictforimprovementsmadebytheDistrictpursuanttoanagreementwiththepropertyownerstoimprovetheirwaterqualityasdiscussedinnote8.L.AMORTIZEDEXPENSESIn2003,theDistrictenteredintoabroadbanddarkfibermaintenanceagreementwithSierraPacificCommunications(SPC)whichisincludedinthelineitem“othernon-currentassets”intheaccompanyingStatementofNetPosition.SPCsubsequentlyassignedtheagreementtoAT&T.TheagreementisexpectedtoprovidebenefittotheDistrictovertheestimated20-yearlifeoftheagreement.(Seenote4).M.CAPITALASSETSCapitalassetsaregenerallydefinedbytheDistrictasassetswithaninitial,individualcostofmorethan$10,000andanestimatedusefullifeofatleasttwoyears.CapitalassetsoftheDistrictarestatedatthelowerofcostortheacquisitionvalueatthetimeofcontributiontotheDistrict.Majoroutlaysforplantarecapitalizedasprojectsareconstructed.Depreciationoncapitalassetsiscalculatedusingthestraight-linemethodovertheestimatedusefullivesoftheassets,whichareasfollows:DistributionPlantElectric23—35yearsWater15—40yearsComputersoftwareandhardware3—7yearsBuildingandimprovements20—33yearsEquipmentandfurniture4—10yearsItistheDistrict’spolicytocapitalizeinterestpaidondebtincurredforsignificantconstructionprojectswhilethoseprojectsareunderconstruction,lessanyinterestearnedonrelatedunspentdebtproceeds.Nonewdebtrelatedtocapitalassetswasissuedin2018and2017;nointerestwascapitalizedin2018orin2017.N.COMPENSATEDABSENCESUndertermsofemployment,employeesaregrantedsickleaveandvacationsinvaryingamounts.Onlybenefitsconsideredtobevestedaredisclosedinthesestatements.Vestedvacationandsickleavepayisaccruedwhenearnedinthefinancialstatements.Theliabilityisliquidatedfromgeneraloperatingrevenuesoftheutility.Page17 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI—ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)oREVENUERECOGNITIONUnbilledrevenues,representingestimatedconsumerusagefortheperiodbetweenthelastmeterreadingandtheendoftheperiod,areaccruedintheperiodofconsumption.Watercustomerswithoutmetersarebilledonaflat-ratebasis,andrevenuesarerecordedasbilled.Revenuesfromconnectionfeesarerecognizeduponcompletionoftheconnection.IncomethattheDistricthasearnedthroughinvestingitsexcesscashisreflectedwithinincomefrominvestmentswhenearned.P.REVENUEANDEXPENSECLASSIFICATIONTheDistrictdistinguishesoperatingrevenuesandexpensesfromnon-operatingitemsinthepreparationofitsfinancialstatements.OperatingrevenuesandexpensesgenerallyresultfromprovidingelectricandwaterservicesinconnectionwiththeDistrict’sprincipalongoingoperations.Theprincipaloperatingrevenuesaresalestocustomers.TheDistrict’soperatingexpensesincludepowerpurchases,labor,materials,services,andotherexpensesrelatedtothedeliveryofelectricandwaterservices.Allrevenuesandexpensesnotmeetingthisdefinitionarereportedasnon-operatingrevenuesandexpenses,orcapitalcontributionsandother.Q.POWERPURCHASESANDTRANSMISSIONInI999,theDistrictenteredintoanagreementwithSierraPacificPowerCompanydbaNVEnergy(SPPC),wherebySPPCwillprovidetransmissionservicestotheDistrictthroughDecember31,2027.TheDistrictusesthistransmissionservicetoimportenergyoverSPPC’stransmissionsystemtoserveDistrictload.Inaddition,theDistrictpurchasesschedulingservicesfromUtahMunicipalPowerSystems(UAMPS)andtheschedulingservicesareincludedinthemonthlypowerbillingsfromUAMPS.ThepurchaseoftransmissionservicesfromSPPCrepresented6.1%and7.8%oftotalpurchasedpowercostsin2017and2018,respectively.InDecemberof2005,theDistrictenteredintoanagreementwithUAMPS.Subsequently,theDistrictenteredintoseveralpoolingappendicesforpowercapacityandenergythatrelatetovarioustimeperiodsfromJanuary2008throughMarch2028.Alsoin2009,theDistrictsignedanagreementwithUAMPSforapproximately5MWoftheNebonaturalgasgenerationplantcapacity.InAugust2012,theHorseButteWindprojectbegancommercialoperationandtheDistrictownsapproximately15MWofnameplatecapacitythatgeneratesabout5MWonaverage.TheDistricthasalsoinvestedintheVeyoHeatRecoveryprojectthatcameonlineinmid-2016.TheDistrictwillexpectaboutI.7MWofcarbon-freegenerationfromthisresource.InAugustof2007,theDistrictenteredintoanagreementwithWesternAreaPowerAdministration(WAPA)forthedeliveryofStampedeDamHydroelectricgeneration.Inaccordancewiththisagreement,theDistrictisentitledtoaportionofthepowergeneratedbyStampedeDam.Thisgenerationisdependentupontheamountofwaterthatismadeavailabletothegenerator.Thisagreementiseffectivethrough2024.In2018and2017,theUAMPScontract,alongwithitsappendices,andtheWAPAcontractforStampedeDamHydroelectricgenerationcomprisedthemajorityofadiversifiedpowerportfoliothatbalancedriskandcostfortheDistrict.Page18 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI—ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)R.CAPANDTRADEPROGRAMPROCEEDSCaliforniaAssemblyBill32(AB32)isaneffortbytheStateofCaliforniatoseta2020greenhousegas(GHG)emissionsreductiongoalintolaw.AB32requiresCaliforniatolowergreenhousegasemissionstoI990levelsby2020.Centraltothisinitiativeistheimplementationofacapandtradeprogram,whichcoversmajorsourcesofGHGemissionsintheStateincludingpowerplants.TheCaliforniaCapandTradeProgramisdesignedtoachievecost-effectiveemissionsreductionsacrossthecappedsectors.TheprogramsetsmaximumstatewideGHGemissionsforallcoveredsectorseachyear(‘cap”),andallowscoveredentitiestoselloffallowances(‘trade”).AnallowanceisatradablepermitthatallowstheemissionofonemetrictonofC02.TheCaliforniacarbonpriceisdrivenbyallowancetrading.TheDistrictissubjecttoAB32andhasexcessallowancesduetoreducingcarbon-basedgenerationinitspowerportfolio.In2018and2017,theDistrictsolditsexcessallowancesintheprogramauctionsandtheproceedswererecordedas$1,186,320and$1140,372operatingrevenuefortherespectiveyears.Theauctionproceedsareheldinarestrictedfundandareusedtopurchasequalifiedrenewablepower(Seenote2).S.INCOMETAXESAsagovernmentagency,theDistrictisexemptfrompaymentoffederalandstateincometaxes.T.TAXREVENUESBeginningin2004,theDistrictleviedadvalorempropertytaxonallthetaxablepropertywithintheOldGreenwoodDistrictinanamountsufficienttopaytheyearlyprincipalandinterestontheSpecialAssessmentDistrictTaxBonds.(Seenotes5and7).TheDistricthadrevenuesof$703,090in2018and$683,217in2017.OnJanuary28,2014,refundingbondsweresoldtoaprivateinvestmentfirmandtheproceedswereusedtocallthe2003OldGreenwoodbondsonMarch1,2014.The2014refundingbondshavethesamerateandmethodofapportionmentconditionsontheOldGreenwoodpropertiesastheoriginal2003bonds.Beginningin2005,theDistrictleviedadvalorempropertytaxonalltaxablepropertywithintheGray’sCrossingDistrictinanamountsufficienttopaytheyearlyprincipalandinterestontheSpecialAssessmentDistrictTaxBonds.(Seenotes5and7).TheDistricthadrevenuesof$2,565,759in2018and$2,560,949in2017.TaxesareassessedbasedonthecountytaxyearendingJune30,resultinginunearnedrevenuesforeachofthecommunityfacilitydistricts.(Seenote6).U.CONTRIBUTEDCAPITALASSETSAportionoftheDistrict’scapitalassetshavebeenobtainedthroughamountschargedtodevelopersforplantconstructedbytheDistrict;directcontributionsofcapitalassetsfromdevelopersandotherparties;aswellasassessmentsoflocalpropertyowners.TheseitemsarerecognizedwithincapitalassetsasconstructioniscompletedforplantconstructedbytheDistrictbasedonthecostoftheitems,whenreceivedforcontributedcapitalassetsbasedontheactualorestimatedfairvalueofthecontributeditems,oruponcompletionoftherelatedprojectfordevelopmentagreements.TheDistrictrecordsamountsreceivedwithincapitalcontributionswhenalegallyenforceableclaimisestablished.UntiltheDistrictmeetsthecriteriatoPage19 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE1—ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)recordtheamountsdescribedaboveascapitalcontributions,anyamountsreceivedarerecordedwithinunearnedrevenuesontheStatementofNetPosition.V.OTHER-PENSIONSIDEFUNDAsaresultofimplementingGASBStatementNo.68,thepensionside-fundpayoffthatoccurredin2011andwhichhadbeenreportedinthefinancialstatementsasanassetwaswrittenoffduetotheDistrict’sparticipationinCaIPERScost-sharingmulti-employerretirementbenefitplan.However,theliabilityforthepayoffremainsuntilpaidinfullthru2022.Theintercompanyfundtransfersfortheprincipalportionofthedebtservicebetweentheelectricandwaterutilityisincludedasother.w.PENSIONForpurposesofmeasuringthenetpensionliabilityanddeferredoutflows/inflowsofresourcesrelatedtopensions,andpensionexpense,informationaboutthefiduciarynetpositionoftheDistrict’sCaliforniaPublicEmployee’sRetirementSystem(CaIPERS)plans(Plans)andtheadditionsto/deductionsfromthePlans’fiduciarynetpositionhavebeendeterminedonthesamebasisastheyarereportedbyCaIPERS.Forthispurpose,benefitpayments(includingrefundsofemployeecontributions)arerecognizedwhendueandpayableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue.x.RECENTACCOUNTINGPRONOUNCEMENTSIMPLEMENTEDBYTHEDISTRICTInJune2015,GASBissuedStatementNo.75,AccountingandFinancialReportingforPostemploymentBenefitsotherthanPensions.Theprimaryobjectiveofthisstatementistoimproveaccountingandfinancialreportingbystateandlocalgovernmentsforotherpost-employmentbenefits(OPEB)(notincludingpensions)andwouldreplaceGASBstatements45and57.Statement75establishesstandardsforrecognizingandmeasuringliabilities,deferredoutflowsofresources,deferredinflowsofresources,andexpensesrelatedtoOPEB.TheDistrictimplementedthestatementinthecurrentyear(SeeNote9andI5).V.DEFERREDOUTFLOWSOFRESOURCESANDDEFERREDINFLOWSOFRESOURCESDeferredOutflowsofResources:Thisseparatefinancialstatementelementrepresentsconsumptionofnetpositionorfundbalancethatappliestofutureperiod(s)andsowillnotberecognizeduntilthattime.DeferredInflowsofResources:Thisseparatefinancialstatementelementrepresentsanacquisitionofnetpositonorfundbalancethatappliestofutureperiod(s)andsowillnotberecognizedasaninflowofresourcesuntilthattime.z.UNAMORTIZEDLOSSONBONDREFUNDINGForcurrentandadvancedrefundingresultsindefeasanceofdebt,thedifferencebetweenthereacquisitionpriceandthenetcarryingamountoftheolddebt(Gainorloss)isdeferredandamortizedasacomponentofinterestexpenseovertheremaininglifeoftheolddebtorthenewdebt,whicheverisshorter.Theseamountsarereportedasdeferredoutflowonthestatementsofnetposition.Page20 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI-ORGANIZATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)AA.ACCOUNTINGPRONOUNCEMENTSTOBEIMPLEMENTEDINUPCOMINGYEARSGASBStatementNo.83,CertainAssetRetirementObligations,addressesaccountingandfinancialreportingforcertainassetretirementobligations(ARO’s).TheDistricthasnotdeterminedwhatimpact,ifany,thispronouncementwillhaveonthefinancialstatements.ApplicationofthisstatementiseffectivefortheDistrict’sfiscalyearendingDecember31,2019.GASBStatementNo.84,FiduciaryActivities,addressesidentifyingfiduciaryactivitiesofallstateandlocalgovernments.Thegeneralfocusofthecriteriaison(1)whetheragovernmentiscontrollingtheassetsofthefiduciaryactivityand(2)thebeneficiarieswithwhomafiduciaryrelationshipexists.Separatecriteriaareincludedtoidentifycomponentunitsandpostemploymentbenefitarrangementsthatarefiduciaryactivities.TheDistricthasnotdeterminedwhatimpact,ifany,thispronouncementwillhaveonthefinancialstatements.ThisstatementiseffectivefortheDistrictfiscalyearendingDecember31,2019.GASBStatementNo.87,Leases,addressesaccountingandfinancialreportingforleasesbygovernments.ThisStatementincreasestheusefulnessoffinancialsstatementsbyrequiringrecognitionofcertainleaseassetsandliabilitiesforleasesthatpreviouslywereclassifiedasoperatingleasesbyestablishingasinglemodelofleaseaccountingbasedonthefoundationalprinciplethatleasesarefinancingsoftherighttouseanunderlyingasset.Underthisstatement,alesseeisrequiredtorecognizealeaseliabilityandintangibleright-to-useleaseasset,andalessorisrequiredtorecognizealeasereceivableandadeferredinflowofresources,therebyenhancingtherelevanceandconsistencyofinformationaboutleasingactivities.TheDistricthasnotdeterminedwhatimpact,ifany,thispronouncementwillhaveonthefinancialstatements.ThisstatementiseffectivefortheDistrictfiscalyearendingDecember31,2020.GASBStatementNo.89,AccountingforInterestCostIncurredbeforetheEndofaConstructionPeriod,addressesinterestcostsincurredbeforetheendofaconstructionperiodtoberecordedasanexpenditureintheapplicableperiod.Asaresult,interestcostsincurredbeforetheendofaconstructionperiodwillnotebeincludedinthehistoricalcostofacapitalassetreported.TheDistricthasnotdeterminedwhatimpactthispronouncementwillhaveonthefinancialstatements.ApplicationofthisstatementiseffectivefortheDistrict’sfiscalyearendingDecember31,2021.Page2l TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTSCash,cashequivalentsandinvestmentsarerecordedinaccountsaseitherrestrictedorunrestrictedasrequiredbytheDistrict’scertificatesofparticipationindenturesorotherthird-partylegalrestrictions.Restrictedassetsrepresentfundsthatarerestrictedbycertificatesofparticipationcovenantsorthirdpartycontractualagreements.AssetsthatareallocatedbyresolutionoftheBoardofDirectorsareconsideredtobeBoarddesignatedassets.BoarddesignatedassetsareacomponentofunrestrictedassetsastheirusemayberedirectedatanytimebyapprovaloftheBoard.UponBoardapproval,assetsfromboarddesignatedaccountsmaybeusedtopayforselectedcapitalprojects.SuchaccountshavebeendesignatedbytheBoardforthefollowingpurposes:ElectricCapitalReplacementStartingin2009,theBoardsetasidefundsdesignatedforfutureelectricinfrastructurereplacement.ElectricVehicleReserveBeginningin2009,theBoardsetasidefundsdesignatedforfutureelectricutilityvehiclereplacements.ElectricRateReserveIncompliancewithBoardrules,theDistrictcreatedanelectricratestabilizationfundinanticipationoffuturecosts.Duringboth2018and2017,therewasnoutilizationofthesefundstooffsetincreasedpowercostsinlieuofraisingelectricrates.ReserveforFutureMetersPriortoI992,connectionfeeschargedtoapplicantsforwaterserviceincludedanamount,whichwasmaintainedinadesignatedfund,tooffsetthecostoffuturemetering.In2008,theBoardadoptedanordinancetochargea$5monthlysurchargetoallcustomersoftreatedwaterbeginningJanuary2009throughDecember2013.Watermetersandautomatedmeterreadingdevicesarebeinginstalled,andcustomerswillbebilledvolumetricallyinaccordancewithCaliforniaAssemblyBill2572.Asmeterswereinstalled,thesefundswereusedtopayforrelatedcosts.In2018themeterfundwasfullydepleted.WaterVehicleReserveBeginningin2009,theBoardsetasidefundsdesignatedforfutureWaterUtilityvehiclereplacements.PrepaidConnectionFeesIncompliancewithBoardrules,theDistricthassetasideprepaidconnectionfeestocoverinstallationcostsofwaterservices.DebtServiceCoverageandOperatingReserveFundEffective2007,theBoardhasvoluntarilysetasidefundstoimprovetheDistrict’scash-to-debt-serviceratio.In2018fundswereusedforcapitalimprovementprojects.Page22 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTS(Continued)DonnerLakeAssessmentDistrictSurchargeFundTheDistrictestablishedamonthlybillingsurchargeintheamountof$6.65applicabletocustomersintheDonnerLakeareatoproviderevenuetopaytheremainderofthecostofreconstructioneffectiveOctober2006.DeferredLiabilitiesReserveStartingin2017,theBoardestablishedareservetoprotecttheDistrictfromvolatilityinpension,otherpost-employmentbenefits,andworker’scompensationpremiums.AsofDecember31,Boarddesignatedaccountsatfairvalueconsistedofthefollowing:20182017Electriccapitalreplacementfund$3,547,434$4,035,103Electricvehiclereserve521293602,706Electricratereserve5,545,6245,449,424Electricdeferredliabilitesreserve2,010,9471,000,000Reserveforfuturemeters-507,653Watervehiclereserve235,49360,897Prepaidconnectionfees75,95780,261Debtservice&operatingreservefundI799,7191,869,954DonnerLakeAssessmentDistrictsurchargefundI19,751104,371WaterdeferredliabilitesreserveI02,032-Totals$13,958,250$13,710,369Certainassetshavebeenrestrictedbybondcovenantsorthirdpartycontractualagreementsforthefollowingpurposes:CertificatesofParticipationPrepaymentstotheTrusteefromtheDistrictforupcomingdebtpayments.SpecialTaxBonds:Gray’sCrossingThetermsofthespecialtaxbondsissuedfortheMello-RoosCommunityFacilitiesDistricts(CFD)requirereservefundsassecurityforeachprincipalandinterestpaymentastheycomedue.Reservefundsaresetasideasprescribedintheloandocuments.ThesereservefundsareheldbyBankofNewYorkMellonTrustCompany.FacilitiesFeesTheDistrictchargesfacilitiesfeestoapplicantsfornewservicetocoverthecostsofinfrastructureneededtomeettheirsystemsdemand.TheuseofsuchfundsisrestrictedbyCaliforniastatelaw.Page23 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTS(Continued)DepartmentofWaterResources(DWR)Prop55ReserveFundRegulationsrelatingtotheDepartmentofWaterResourcesloanrequiretheaccumulationofareservefundassecurityforeachprincipalandinterestpaymentastheycomedue.AnnualpaymentsintothefundwererequiredforeachofthefirsttenyearsbeginningApril1,I996.Thetotalreservefundequalstwosemi-annualpaymentsandwasfullyfundedduring2006.Thesefundsaresetasideforthelifeoftheborrowedamount.AllofthereservefundsareinvestedintheStateofCaliforniaLocalAgencyInvestmentFund.DonnerLakeSpecialAssessmentDistrictImprovementandReserveFundTheDistrictestablishedtheDonnerLakeSpecialAssessmentDistrict(DLAD)ImprovementFundtoaccountforallfundsreceivedfromtheSpecialAssessmentReceivable,whichwillbeusedtopaythedebtservicecostsrelatedtotheDonnerLakeWaterSystemproject.TheDLADImprovementFundalsohasareservefundasrequiredbytheCalifornia—SafeDrinkingWater—StateRevolvingFund(SRF).Thisfundisrequiredtosetaside$40,043semi-annuallyfortenyearsbeginningin2006.ThereservefundwasfullyfundedasofDecember3l,2016.AB32CapandTradeAuctionFundTheDistrictelectricutilityisidentifiedasan“ElectricDistributionUtility”undertheCapandTraderegulationsandisthereforeeligibletoreceiveadirectallocationofallowancesthatcanbesoldinanauction.Theproceedsfromquarterlyallowanceauctionsareheldinthisrestrictedfundandareusedtopurchasequalifiedrenewablepower.Thesefundsareintendedtomitigatetheburdenontheconsumerwithoutimpactingacarbonpricesignal.Other(AreaImprovementFunds)TheDistrictreceivedfundsfromtheCountyofNevada,whicharetobeusedonlyforimprovementstospecificareaswithintheDistrict’sboundariesinNevadaCounty.TheseareasincludevariousNevadaCountyassessmentdistricts.AsofDecember31,restrictedcashandcashequivalentsandinvestmentsatfairvalueconsistedofthefollowing:20182017CertificatesofParticipation$575,626$I020,999Specialtaxbonds2,925,4313,015,361FacilitiesfeesI416,480671,866DWR-Prop55reservefund327,308319,873DonnerLakeSpecialAssessmentDistrictimprovement2,679,2452,634,240DonnerLakeSpecialAssessmentDistrictreservefund811379811,765AB32CapandTradeAuctionfundI,I97,3621,I37,796Other(areaimprovementfunds)54,20052,969TotalRestrictedCashandCashEquivalentsandInvestments$9,987,031$9,664,869Page24 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTS(Continued)CashandinvestmentsarecomprisedofthefollowingcashandcashequivalentsandinvestmentsasofDecember31:20182017Cashandcashequivalents$32,139,864$30,543,337Investments—governmentbonds1,753,2751,818,513Totals$33,893,139$32,361,850Cashandcashequivalentsandinvestmentswere$33,893,139and$32,361,850atDecember31,2018and2017,respectively.Cashequivalentssubstantiallyconsistofdepositsinthestatepooledfund,PlacerCountypooledfund,moneymarketfundsandinvestments.Adjustmentsnecessarytorecordinvestmentsatfairmarketvaluearerecordedintheoperatingstatementasincreasesordecreasesininvestmentincome.Marketvaluesmayhavechangedsignificantlyafteryearend.FAIRVALUEMEASUREMENTTheDistrictappliestheprovisionsofGovernmentalAccountingStandardsBoard(GASB)StatementNo.72,FairValueMeasurementandApplication,whichrequiresgovernmentalentities,toreportcertaininvestmentsatfairvalueontheStatementsofNetPosition.InvestmentsarevaluedatfairvalueatDecember31.Fairvalueisdefinedasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.TheDistrictcategorizesitsfairvaluemeasurementswithinthefairvaluehierarchyestablishedbygenerallyacceptedaccountingprinciples.Thehierarchyisbasedonthevaluationinputsusedtomeasurethefairvalueoftheasset.LevelIinputsarequotedpricesforidenticalinstrumentsinactivemarkets.Level2inputsarequotedpricesforsimilarinstrumentsinactivemarkets;quotedpricesforidenticalorsimilarinstrumentsinmarketsthatarenotactive;andmodelderivedvaluationsinwhichallsignificantinputsareobservable.Level3inputsarevaluationsderivedfromvaluationtechniquesinwhichsignificantinputsareunobservable.TheDistrictclassifiesitsfairvaluemeasurementswithinthefairvaluehierarchyestablishedbygenerallyacceptedaccountingprinciples.TheDistricthasthefollowingfairvaluemeasurementsasofDecember31,2018:.USGovernmentbondsandcashequivalentsarevaluedusingobservableinputs(Level2inputs).INVESTMENTSAUTHORIZEDBVTHEDISTRICT’SINVESTMENTPOLICYTheDistrictadoptedaninvestmentpolicyin2006whichallowedforinvestmentsininstrumentspermittedbytheCaliforniaGovernmentCodeand/ortheinvestmentspermittedbythetrustagreementsonDistrictfinancing,includinginvestmentsinthelocalgovernmentinvestmentfundpooladministeredbytheStateofCalifornia(LAIF),PlacerCountyTreasurer’sInvestmentPortfolio(PCTIP)pooledinvestmentandUtahPublicTreasurers’InvestmentFund(UPTIF).TheDistrict’sinvestmentpolicycontainsprovisionsintendedPage25 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTS(Continued)tolimittheDistrict’sexposuretointerestraterisk,creditrisk,andconcentrationofcreditrisk.AtDecember31,2018and2017theDistrict’sdepositsandinvestmentsatfairvaluewereheldasfollows:CashonhandDepositsLAIFPCTIPUPTIFMoneyMarketFundsGovernmentBondsTotals2018$2,4001,538,99712,108,9378,068,9488,813,1431,607,4391,753,275$33,893,1392017$2,400I083,31011,709,1517,933,7617,446,5102,368,2051,818,513$32,361,850DISCLOSURESRELATINGTOINTERESTRATERISKInterestrateriskistheriskthatchangesinthemarketinterestrateswilladverselyaffectthefairvalueofaninvestment.Generally,thelongerthematurityofaninvestment,thegreateristhesensitivityofitsfairvaluetochangesinmarketinterestrates.InformationaboutthesensitivityofthefairvaluesoftheDistrict’sinvestmentstomarketinterestratefluctuationsisprovidedbythefollowingtablethatshowstheDistrict’sinvestmentsbymaturityfor2018and2017:InvestmentsandDepositsMaturityLAIFPCTIPUPTIFFederatedU.S.TreasuryCashReserveMorganStanleyTreasuryFidelityMoneyMarketGovernmentPortfolio57DreyfusTreasurySecuritiesFederalFarmCreditBanksDISCLOSURESRELATINGTOCREDITRISK3monthsorless3monthsorless3monthsorless3monthsorless3monthsorless3monthsorless3monthsorless03/02/2021Generally,creditriskistheriskthatanissuerofaninvestmentwillnotfulfillitsobligationtotheholderoftheinvestment.Thisismeasuredbytheassignmentofaratingbyanationallyrecognizedstatisticalratingorganization.LAIF,PCTIFandUPTIFdonothavearatingprovidedbyanationallyrecognizedstatisticalratingorganization.TheMorganStanleyTreasuryisratedAAAmbyS&PandAaa-mfbyMoody’s.TheFederatedU.S.TreasuryCashReserveisratedAAAmbyS&PandAaa-mfbyMoody’s.FederalFarmCreditBanksisratedAA+byS&PandAaabyMoody’s.TheDreyfusTreasurySecuritiesisratedAaa-mfbyMoody’sandAAAmbyS&P.TheFidelityMoneyMarketisratedAAA-mfbyMoody’sandAAAmbyS&P.CUSTODIALCREDITRISKCustodialcreditriskfordepositsistheriskthat,intheeventofthefailureofadepositoryfinancialinstitution,agovernmentwillnotbeabletorecoveritsdepositsorwillnotbeabletorecovercollateralsecuritiesthatareinthepossessionofanoutsideparty.TheDistrict’sinvestmentpolicydoesnotcontainlegalorpolicyrequirementsthatwouldlimittheexposuretocustodialcreditriskfordeposits.However,theCaliforniaGovernmentCoderequiresthatafinancialinstitutionsecuredepositsmadebystateorlocalgovernmentalPage26 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE2—CASH,CASHEQUIVALENTS,ANDINVESTMENTS(Continued)unitsbypledgingsecuritiesinanundividedcollateralpoolheldbyadepositoryregulatedunderstatelaw(unlesswaivedbythegovernmentunit).ThemarketvalueofpledgedsecuritiesinthecollateralpoolmustequalatleastII0%ofthetotalamountdepositedbythepublicagencies.AsofDecember31,2018and2017alldepositswerefullyinsuredorcollateralized.Thecustodialcreditriskforinvestmentsistheriskthat,intheeventofthefailureofthecounterparty(e.g.,broker/dealer)toatransaction,agovernmentwillnotbeabletorecoverthevalueofitsinvestmentorcollateralsecuritiesthatareinthepossessionofanotherparty.TheCaliforniaGovernmentCodeandtheDistrict’sinvestmentpolicydonotcontainlegalorpolicyrequirementsthatwouldlimittheexposuretocustodialcreditriskforinvestments.Withrespecttoinvestments,custodialcreditriskgenerallyappliesonlytodirectinvestmentsinmarketablesecurities.Custodialcreditriskdoesnotapplytoalocalgovernment’sindirectinvestmentinsecuritiesthroughtheuseofmutualfundsorgovernmentalinvestmentpools(suchasLAIF).DEPOSITINSTATEINVESTMENTPOOLTheDistrictisavoluntaryparticipantintheLocalAgencyInvestmentFund(LAIF).ThisinvestmentfundhasanequityinterestintheStateofCalifornia’s(State’s)PooledMoneyInvestmentAccount(PMIA).PMIAfundsareondepositwiththeState’sCentralizedTreasurySystemandaremanagedincompliancewiththeCaliforniaGovernmentCodeaccordingtoastatementofinvestmentpolicywhichsetsforthpermittedinvestmentvehicles,liquidityparameters,andmaximummaturityofinvestments.ThefairvalueoftheDistrict’sinvestmentinthispoolisreportedintheaccompanyingfinancialstatementsatamountsbasedupontheDistrict’spro-ratashareofthefairvalueprovidedbytheLAIFfortheentireLAIFportfolio(inrelationtotheamortizedcostoftheportfolio).ThebalanceavailableforwithdrawalisbasedontheaccountingrecordsmaintainedbytheLAIF,whicharerecordedonanamortizedcostbasis.DEPOSITINPLACERCOUNTYTREASURERINVESTMENTPOOLTheDistrictisavoluntaryparticipantinthePlacerCountyInvestmentPortfolio(PCTIP).TheDistrictiseligibletoparticipateinPCTIPbecauseaportionoftheDistrict’sserviceareaisinPlacerCounty.InvestmentsareondepositwiththePlacerCountyTreasurerandaremanagedincompliancewiththeCaliforniaGovernmentCodeaccordingtoastatementofinvestmentpolicywhichsetsforthpermittedinvestmentvehicles,liquidityparameters,andmaximummaturityofinvestments.ThefairvalueoftheDistrict’sinvestmentinthispoolisreportedintheaccompanyingfinancialstatementsatamountsbasedupontheDistrict’spro-ratashareofthefairvalueprovidedbyPlacerCountyTreasurerfortheentirePCTIP(inrelationtotheamortizedcostoftheportfolio).ThebalanceavailableforwithdrawalisbasedontheaccountingrecordsmaintainedbythePlacerCountyTreasurer,whicharerecordedonanamortizedcostbasis.DEPOSITINUTAHPUBLICTREASURERS’INVESTMENTFUNDTheDistrictisavoluntaryparticipantintheUtahPublicTreasurers’InvestmentFund(UPTIF).TheDistrictiseligibletoparticipatein(UPTIF)throughitsmembershipwithUtahAssociatedMunicipalPowerSystems(UAMPS).InvestmentsareondepositwithStateofUtahpublictreasuryandinvestmentsarerestrictedtothoseauthorizedbytheUtahMoneyManagementActandrulesoftheMoneyManagementCouncilofUtah.ThefairvalueoftheDistrict’sinvestmentsinthispoolisreportedintheaccompanyingfinancialstatementsatamountsbasedupontheDistrict’spro-ratashareofthefairvalueprovidedbyUPTIFthroughUAMPSMemberRetentionFund.Page27 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017CapitalassetsconsistofthefollowingatDecember31,2018and2017:AsofDecember31,2018and2017,generalnotbeingdepreciated.plantincludedlandandlandrightsof$3,318,346whichareAportionoftheplanthasbeencontributedtotheDistrict.Whenreplacementisneeded,theDistrictreplacesthecontributedplantwithDistrict-financedplant.NOTE4-TELECOMMUNICATIONSERVICESInI999,theDistrictinitiatedaprojecttoexpanditsbasicserviceofferingstoincludeinternetaccess,cabletelevisionandvoicedeliveredoverfiberopticnetworks(thebroadbandproject).TheDistrictcompletedthebroadbanddesignprojectandobtainedthenecessaryregulatoryapprovalsandfranchisesneededtoconstructandlaunchthebroadbandproject.AlocalcabletelevisionserviceproviderfiledanobjectioninSeptember2004withtheNevadaCountyLocalAgencyFormationCommission(LAFCO),theentityresponsibleforprovidingregulatoryapprovalforthebroadbandproject.Afterdenyingthecabletelevisionprovider’srequestforareconsiderationoftheirapprovaloftheDistrict’sproject,thecabletelevisionproviderfiledalawsuitagainstLAFCO.TheDistrictwasnotnamedinthelawsuit.ArulingonthelawsuitwasreceivedinJanuary2006.LAFCOprevailedonallportionsofthecabletelevisionprovider’sclaim.Thecabletelevisionproviderfiledanappeal;however,inJuneof2007,theCourtruledinfavorofLAFCO,upholdingtheinitialruling.Since2009,theDistricthasbeenexploringoptionstosellorleasetheexistinginfrastructuretoprovideareturnoninvestmentintheproject.ExpensesincurredbytheDistrictasofDecember31,2018onthebroadbandprojecttotal$2,834,079,olwhich$496,990wasexpensedin2014forlegalfeesandpreliminaryfeasibilitystudies.In2018and2017therewerenomaterialexpendituresforthisproject.In2018,TheDistrictsignedaMemorandumofUnderstandingwithPlumasSierraTelecommunicationstoofferservicesutilizingthesefourfibersfromRenotoSacramentoinfutureyears.NOTE3—CAPITALASSETSJanuary1,December31,2018AdditionsReductions2018Electricdistributionfacilities$60,416,921$5,100,497$(1,312,726)$64,204,692Waterdistributionfacilities112,596,7473,836,606(54,760)116,378,593Generalplant15,782,620921,628(190,954)16,513,294188,796,2889,858,731(1,558,440)197,096,579Less:Accumulateddepreciation(68,563,235)(7,203,036)1673,428(74,092,843)Constructionworkinprogress2,881,02111,929,099(7,640,306)7,169,814Totals$123,114,074$14,584,794$(7,525,318)$130,173,550January1,December31,2017AdditionsReductions2017Electricdistributionfacilities$58,345,690$2,191342$(120,111)$60,416,921Waterdistributionfacilities108,860,8254,898,966(1,163,044)112,596,747Generalplant15,062,278988,813(268,471)15,782,620182,268,7938,079,121(1,551,626)188,796,288Less:Accumulateddepreciation(63,372,738)(6,840,212)1649,716(68,563,235)Constructionworkinprogress4,706,2765,554,478(7,379,733)2,881,021Totals$123,602,331$6,793,387$(7,281,643)$123,114,074Page28 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017Long-termdebtconsistedofthefollowingatDecember312018:January1,December31,Duewithin2018AdditionsReductions2018oneyearPensionObligationBondsElectric,2.47%duesemi-annuallyto2022StateRevolvingFundLoan—Water,2.34%,duesemi-annuallybeginningin2006to2026SpecialTaxBonds—MelloRoos,4.18%,dueseriallyto2032SpecialTaxBonds—MelloRoos,3.25%to5.7%,dueseriallyto2035(netunamortizeddiscountsof$78,067)SpecialTaxBonds—MelloRoos,3.50%to5.50%,dueseriallyto2035(netunamortizeddiscountsof$8,626)CertificatesofParticipation—Water,4.00%to5.00%dueseriallyto2021refinancedin2016CertificatesofParticipation—Water,2.00%to4.00%,dueseriallyto2035(netpremiumsof$448,041)DepartmentofWaterResources,3.18%,duesemiannuallyto2021,securedbytealandpersonalpropertyInstallmentloan,4.58%dueseriallyto2023______________________________________________________________________________TotalsNOTE5—LONG-TERMDEBT4,745,000-(1,269,000)3,476,000920,0006,140,596-(661,007)5,479,589676,5659,502,700-(337,900)9,164,800371,20013,892,246-(335,313)13,556,933335,00017,055,856-(449,482)16,606,374440,0002,634,000-(644,000)1,990,000659,00013,435,059-(577,018)12,858,041565,0001,007,651-(276,650)731,001285,51058,403-(10,658)47,74511,146$68,471,511$-$(4,561,028)$63,910,483$4,263,421Page29 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE5—LONG-TERMDEBT(Continued)Long-termdebtconsistedofthefollowingatDecember31,2017:January1,December31,Duewithin2017AdditionsReductions2017oneyearPensionObligationBondsElectric,2.47%duesemi-annuallyto2022StateRevolvingFundLoan—Water,2.34%,duesemi-annuallybeginningin2006to2026SpecialTaxBonds—MelloRoos,4.18%,dueseriallyto2032SpecialTaxBonds—MelloRoos,3.25%to5.7%,dueseriallyto2035(netunamortizeddiscountsof$82,754)SpecialTaxBonds—MelloRoos,3.50%to5.50%,dueseriallyto2035(netunamortizeddiscountsof$9,144)CertificatesofParticipation—Water,4.00%to5.00%dueseriallyto2021refinancedin2016CertificatesofParticipation—Water,2.00%to4.00%,dueseriallyto2035(netpremiumsof$475,059)DepartmentofWaterResources,3.18%,duesemiannuallyto2021,securedbyrealandpersonalpropertyInstallmentloan,4.58%dueseriallyto2023_____________________________________________________________________________Totals$5,149,000$-$(404,000)$4,745,000$1,269,0006,786,402-(645,806)6,140,596661,0069,811,500-(308,800)9,502,700337,90014,147,559-(255,313)13,892,246295,00017,410,337-(354,481)17,055,856395,0003,266,000-(632,000)2,634,000644,00013,997,077-(562,018)13,435,059550,0001,275,743-(268,092)1,007,651276,650374,548-(316,145)58,40310,658$72,218,166$-$(3,746,655)$68,471,511$4,439,214Page30 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE5—LONG-TERMDEBT(Continued)DuringApril2004,theDistrictobtainedfinancingintheformofaStateRevolvingFundLoan,theproceedsofwhichwereutilizedinthereplacementoftheDonnerLakewatersystem.TheDistrictsubmittedexpenditurestotheStateforreimbursementof$12,732,965.Thesemi-annualprincipalandinterestpaymentsare$400,426andcommencedin2006.In2004,theremainingbalanceof$12,227,122wasusedtopayoffthetemporarylinesofcreditobtainedin2001and2002tofundtheDonnerLakeproject.(Seenote8).DuringDecember2003,theOldGreenwoodCommunityFacilitiesDistrictissued$12,445,000ofSpecialTaxBonds,thenetproceedsofwhichwereutilizedtofinancevariouspublicimprovementsforpropertywithinOldGreenwood.(Seenote7).ThetermsoftheSpecialTaxBondscallfordebtservicepaymentstobeprovidedsolelybytaxesleviedonandcollectedfromtheownersofthetaxablelandwithinOldGreenwood.ThebondsaresecuredbylandlocatedwithinOldGreenwood.InJanuary2014,theoriginal2003bondsissuedfortheOldGreenwoodCommunityFacilitiesDistrictwererefunded(refinanced)byissuing2014bondstoaprivateinvestmentfirmatalowerrate,savingthepropertyownersinOldGreenwoodover$3millionoverthetermofthebonds.The2014bondsdidnotrequireareservefund.Thereforethereservefundofthe2003bondswasutilizedtoreducetheprincipal.The2014bondshavesimilartermsandhavethesamerateandmethodofapportionmentfortheOldGreenwoodparcelownersastheoriginal2003bonds.During2005and2004respectively,theGray’sCrossingCommunityFacilitiesDistrictissued$15,375,000and$19,155,000ofSpecialTaxBonds,thenetproceedsofwhichwereutilizedtofinancevariouspublicimprovementsforpropertywithinGray’sCrossing.(Seenote7).ThetermsoftheSpecialTaxBondscallfordebtservicepaymentstobeprovidedsolelybytaxesleviedonandcollectedfromtheownersofthetaxablelandwithinGray’sCrossing.ThebondsaresecuredbylandlocatedwithinGray’sCrossing.OnOctober12,2006,throughtheTruckeeDonnerPublicUtilityDistrictFinancingCorporationonbehalfoftheDistrictissued$26,570,000ofCertificatesofParticipationtorefund100%oftheoutstandingbalanceofCertificatesissuedinI996,completethefundingoftheDonnerLakeAssessmentDistrictwatersystem,andfundwatersystemcapitalimprovements.Therefundingportionofthe2006COP’s,totaling$8,465,000,hasanaverageinterestrateo14.10%.Therefunded1996COP’shadanaverageinterestrateof5.41%.Thenetproceedsof$7,500,557(afterpaymentof$63,733inunderwritingfees,insuranceandotherissuancecosts)plusanadditional$1315,194ofreservefundmonieswereusedtoprepaytheoutstandingdebtservicerequirementsontheI996COP’s.ThetermsoftheCertificatescallforpaymentstobemadeonlyfromthenetrevenuesoftheWaterDivisionandthedebtissecuredbythisrevenue.TheserevenuesarerequiredtobeatleastequaltoI25%ofthedebtserviceforeachyear.In2015,aportionofthe2006COPwasrefunded.Sinceaportionofthe2006COPwasusedforadvancerefundingofpreviousCOP,thatportioncouldnotbeadvancerefundedatthetimeoftherefunding.Thenew2015refundingdidnotrequireareservefund.Thereservefundwasliquidatedandappliedtowardsreducingthedebtprincipal.Theestimatednetpresentvaluesavingswere$1,600,000or10%overtheremaininglifeofissuance.In2016,theremainingportionofthe2006COPwasrefunded.Duetotherefundinganestimatednetpresentvaluesavingsof$222,000wasachieved.Page3l TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE5—LONG-TERMDEBT(Continued)UndertheSaleDrinkingWaterBondLawof1986,theDepartmentofWaterResourcesprovideda$5,000,000loantotheDistrictin1993.Theloanwastofinancecapitalimprovementstothepublicwatersupplyandtoreducewaterqualityhazards.ThetermsoftheloancallforpaymentstobemadeonlyfromthenetrevenuesoftheWaterDivision,whicharerequiredtobesufficienttopaythedebtserviceforeachyear.InJune2011,theDistrictrefunded(refinanced)anexisting$7.8millionpensionsidefundobligationforitsparticipationinCaIPERS.Priorto2011,theannualsidefundpaymentswereexpensedanddescribedintheNotestoFinancialStatements.ThepensionsidefundliabilitywasamortizedthroughJune2022witha7.75%rate.ThisliabilitywasnotrequiredtobereportedontheDistrict’sStatementofNetPosition,butthefuturepensionexpensewasincludedinbudgetandratecalculations.Thenewrefundingrateof5%reducedtheDistrict’sannualpensioncostsbyalmost$100,000through2022.In2016,theDistrictrefundedthepensionsidefundagainearningtheDistrictannualsavingsof$30,000or$164,000intotal.Asanormalpartofitsoperations,theDistrictfinancestheacquisitionofcertainassetsthroughtheuseofinstallmentloans.Theseloanshavebeenusedtofinancethepurchaseofvehicles,equipment,andcertainwatersystemimprovements.Therewerenoadditionalinstallmentloansin2018orin2017.Scheduledpaymentsondebtare:7,360,000$63,549,135448,041(86,693)$63,910,483201920202021202220232024-20282029-30332034-2038Plus:UnamortizedpremiumsLess:UnamortizeddiscountsPrincipal$4,263,4214,497,2844,579,6333,446,7213,080,746I6,614,63019,706,700Interest$2,763,4532,632,6222,486,1792,338,8522,211,8998,976,4204,863,027Total$7,026,8747,129,9067,065,8125,785,5735,292,64525,591,05024,569,727573,7207,933,720$26,846,172$90,395,307Page32 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE6—UNEARNEDREVENUESTransactionsthathavenotyetmetrevenuerecognitionrequirementsarerecordedasanon-currentliabilityandreflectedintheaccompanyingStatementofNetPosition.AsofDecember31,2018and2017,unearnedrevenuesconsistofunearnedspecialassessmentrevenues,developmentagreementdeposits,connectionfees,andotherdeposits.UnearnedrevenuesconsistedofthefollowingatDecember31,2018and2017:January1,December31,2018AdditionsReductions2018Unearnedtaxcevenues$1,582,326$1,614,691$(1582,326)$1,614,691Developmentagreementdeposits2,768,4222,306,700(1347,326)3,727,796Connectionfeesandotherdeposits885,6541,440,232(1,098,741)1,227,145Totals$5,236,402$5,361,623$(4,028,393)$6,569,632January1,December31,2017AdditionsReductions2017Unearnedtaxrevenues$1,661,841$1,582,326$(1,661,841)$1,582,326Developmentagreementdeposits2,237,3311,134,433(603,342)2,768,422Connectionfeesandotherdeposits836,177823,218(773,741)885,654Totals$4,735,348$3,539,977$(3,038,923)$5,236,402NOTE7—COMMUNITYFACILITIESDISTRICTSInordertofinancevariouspublicimprovementsneededtodeveloppropertywithintheTownofTruckee,California,theDistrictformedCommunityFacilitiesDistricts(CFD),whichissuedSpecialTaxBondspursuanttotheMello-RoosCommunityFacilitiesActof1982,asamended.Accordingly,theBondsarespecialobligationsoftherespectiveCommunityFacilitiesDistrictsandarepayablesolelyfromrevenuesderivedfromtaxesleviedonandcollectedfromtheownersofthetaxablelandwithintherespectiveCommunityFacilitiesDistricts.TheseSpecialTaxBondsarenotgeneralorspecialobligationsoftheDistrict.TheBoardofDirectorsoftheDistrictisthelegislativebodyoftheCommunitiesFacilitiesDistrictsandassuchtheyapprovetheratesandmethodofapportionmentofthespecialtaxes.Asimprovementswerecompleted,theinfrastructurewasdonatedintheformofacapitalcontributiontotheTownofTruckee,theTruckeeSanitaryDistrict,SouthwestGas,andtheDistrict.InDecember2003,theCommunityFacilitiesDistrictNo.03-1(OldGreenwood)wasformedandissued$12,445,000inSpecialTaxBonds(the03-1Bonds).InJanuary2014,theoriginal2003bondswererefunded(refinanced)byissuing2014bondstoaprivateinvestmentfirmatalowerrate,savingthepropertyownersinOldGreenwoodover$3millionoverthetermofthebonds.The2014bondshavesimilartermsandhavethesamerateandmethodofapportionmentfortheOldGreenwoodparcelownersastheoriginal2003bonds.During2018and2017respectively,taxesof$723,694and$682,485wereleviedbyOldGreenwood.Oftheseamounts,$361847and$341243relateto2018and2017respectively,andaccordinglyareincludedintaxrevenuesintheaccompanyingStatementofRevenues,Expenses,andChangesinNetPosition.TheremainingamountwillberecognizedinfutureperiodsandareincludedinunearnedrevenuesontheaccompanyingStatementofNetPosition.Page33 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE7—COMMUNITYFACILITIESDISTRICTS(Continued)InSeptember2004,theCommunityFacilitiesDistrictNo.04-1(Gray’sCrossing)wasformedandissued$15,375,000inSpecialTaxBonds(the04-1Bonds).In2005,anadditional$19,155,000(2005Series)inSpecialTaxBondswasissuedfortheGray’sCrossingCFD.Duringthecountytaxrollfor2017and2016,taxesof$2,505,688and$2,482,166respectivelywereleviedbyGray’sCrossing.Ofthisamount,$1,252,844and$1,241,083relateto2017and2016respectively,andaccordingly,areincludedintaxrevenues.TheremainingleviedamountthroughthecountytaxrollwillberecognizedinfutureperiodsandisincludedinunearnedrevenuesontheaccompanyingStatementofNetPosition.TheofficialstatementsandcontinuingdisclosuresmaybeviewedonthewebsiteofElectronicMunicipalMarketAccess(EMMA)oftheMunicipalSecuritiesRulemakingBoard(MSRB),http://emma.msrb.org/.TheCommitteeonUniformSecuritiesIdentificationProceduresnumber(CUSIP)forthesespecialtaxbondsisCUSIP897817.NOTE8-DONNERLAKEWATERCOMPANYACQUISITIONIn2001,theDistrictacquiredtheDonnerLakeWaterCompanybyinitiatinganeminentdomainlawsuit.Asapartofthetakeover,theDistrictreplacedtheentirewatersystem,whichcostapproximately$15.6millionandwascompletedin2006.TheDistrictinitiallyestimatedthereplacementcosttobe$13million.TheDonnerLakepropertyownersagreedtoreimbursetheDistrictforthefullcostsofthereplacement.Therefore,anassessmentwasplacedoneachDonnerLakehomeowner’spropertyforapro-ratashareofthe$13millionpayableimmediatelyorwithanoptiontopayover20years.TheassessmentiscollectedbyNevadaCountyandPlacerCountyonbehalfoftheDistrictandissecuredbytheDonnerLakepropertyowners.Amonthly$6.65watersystemupgradesurchargeispaidbytheDonnerLakecustomerstoreimbursetheDistrictforthe$2.6millioncostincurredinexcessoftheassessment.InApril2004,theDistrictobtainedfinancingintheformofaStateRevolvingFundLoanfor$12,732,965atarateof2.34%.TheDistrictisrequiredtofundareserveaccountbymakingsemi-annualreservepaymentsintheamountof$40,043fora10-yearperiod.ThereservefundisfullyfundedasofDecember31,2016.AsofDecember31,2018and2017,theassessmentreceivablefromthepropertyownerswas$2294810and$3,005,178respectively,ofwhich$757,171and$736,020isdueinthenextyear.TheseamountsareshownasSpecialAssessmentsReceivableintheStatementofNetPosition.TheproceedsoftheassessmentandsurchargeareplacedintheDonnerLakeSpecialAssessmentDistrictImprovementFundandusedtopaythedebtserviceforthewatersystemimprovements.Page34 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANSA.PENSIONPLANSPlanDescription—AllqualifiedpermanentandprobationaryemployeesareeligibletoparticipateintheDistrict’sMiscellaneousEmployeePensionPlans,cost-sharingmultipleemployerdefinedbenefitpensionplansadministeredbytheCaliforniaPublicEmployees’RetirementSystem(CaIPERS).BenefitprovisionsunderthePlansareestablishedbyStatestatuteandLocalGovernmentresolution.CaIPERSissuespubliclyavailablereportsthatincludeafulldescriptionofthepensionplansregardingbenefitprovisions,assumptionsandmembershipinformationthatcanbefoundontheCaIPERSwebsite.BenefitsProvided—CaIPERSprovidesserviceretirementanddisabilitybenefits,annualcostsoflivingadjustmentsanddeathbenefitstoplanmembers,whomustbepublicemployeesandbeneficiaries.Benefitsarebasedonyearsofcreditedservice,equaltooneyearoffulltimeemployment.Memberswithfiveyearsoftotalserviceareeligibletoretireatage50withstatutorilyreducedbenefits.Allmembersareeligiblefornon-dutydisabilitybenefitsafter10yearsofservice.ThedeathbenefitsisOptionalSettlement2WDeathBenefit.ThecostoflivingadjustmentsforeachplanareappliedasspecifiedbythePublicEmployees’RetirementLaw.The2.7%at55MiscellaneousPlanisclosedtonewentrants.Theplans’provisionsandbenefitsineffectatDecember31,2018aresummarizedasfollows:MiscellaneousPriortoOnorafterJanuary1,2013January1,2013BenefitFormula2.7%@552%@62BenefitVestingSchedule5yearsser’iice5yearssenAceBenefitPaymentsmonthlyforlifemonthlyforlifeRetirementAge50andUp52andUpMonthlyBenefits,asa%ofeligiblecompensation2.0%-2.7%1.0%to2.5%RequiredEmployeeContributionsRates8%6.25%RequiredEmployerContributionsRates12.514%6.985%Contributions—Section208149(c)oftheCaliforniaPublicEmployee’sRetirementLawrequiresthattheemployercontributionratesforallpublicemployersbedeterminedonanannualbasisbytheactuaryandshallbeeffectiveontheJuly1followingnoticeofachangeintherate.FundingcontributionsforbothPlansaredeterminedannuallyonanactuarialbasisasofJune30byCaIPERS.Theactuariallydeterminedrateistheestimatedamountnecessarytofinancethecostsofbenefitsearnedbyemployeesduringtheyear,withanadditionalamounttofinanceanyunfundedaccruedliability.TheDistrictisrequiredtocontributethedifferencebetweentheactuariallydeterminedrateandthecontributionrateofemployees.ContributionsshownbelowareforthefiscalyearofJuly1,2017throughJune30,2018.MiscellaneousPriortoOnorafterHireDateJanuary1,2013January1,2013BenefitFormula2.7%@552%@622018EmployerContributions$1,136,849$109,6272017EmployerContributions$1044,745$94,014Page35 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)B.PENSIONLIABILITIES,PENSIONEXPENSESANDDEFERREDOUTFLOWS/INFLOWSOFRESOURCESRELATEDTOPENSIONSAsofDecember31,2018,theDistrictreportednetpensionliabilitiesforitsproportionatesharesofthenetpensionliabilityasfollows:ProportionateShareofNetPensionLiabilityFiscalYearEndinaJune30,2018$11,742,137June30,2017$1I975,655TheDistrict’snetpensionliabilityismeasuredasaproportionateshareofthenetpensionliability.ThenetpensionliabilityismeasuredasofJune30,2018,andthetotalpensionliabilityusedtocalculatethenetpensionliabilitywasdeterminedbyanactuarialvaluationasofJune30,2017rolledforwardtoJune30,2018usingstandardupdateprocedures.TheDistrict’sproportionofthenetpensionliabilitywasbasedonaprojectionoftheDistrict’slong-termshareofcontributionstothepensionplansrelativetotheprojectedcontributionsofallparticipatingemployers,actuariallydetermined.TheDistrict’sproportionateshareofthenetpensionliabilityforthePlanforthemeasurementdateofJune30,2018andJune30,2017isasfollows:PercentageShareofRiskPoolMeasurementDateJune30,2018June30,2017ChangePercentageofPlanNPL0.31157%FortheyearsendedDecember31,2018and2017theDistrictrecognizedpensionexpenseof$1528,763and$2,269,611respectively.AtDecember31,2018theDistrictreporteddeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopensionsfromthefollowingsources:$1,010,564297,21458,050244,597215,948704,797$2,286,573$244,5970.30379%0.00778%DeferredOutflowsofResourcesDeferredInflowsofResourcesChangesofassumptionsDifferencesbetweenexpectedandactualexperienceDifferencesbetweenprojectedandactualin’estmentearningsDifferencesbetweenemployerscontributionsandproportionateshareofcontributionsChangeinernployersproportionPensioncontributionsmadesubsequenttothemeasurementdateTotalPage36 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)B.PENSIONLIABILITIES,PENSIONEXPENSESANDDEFERREDOUTFLOWS/INFLOWSOFRESOURCESRELATEDTOPENSIONS(Continued)$704,797isreportedasdeferredoutflowsofresourcesrelatedtocontributionssubsequenttothemeasurementdatewillberecognizedasareductionofthenetpensionliabilityintheyearendedDecember31,2018.Otheramountsreportedasdeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopensionswillberecognizedaspensionexpenseasfollows:YearEndedDecember31Amount2019$1,141,6222020$675,5192021($374,348)2022($105,614)$1,337,179ActuarialAssumptions—ThetotalpensionliabilitiesintheJune30,2018actuarialvaluationsweredeterminedusingthefollowingactuarialassumptions:Miscellaneous2018ValuationDateJune30,2017MeasurementDateJune30,2018ActuarialCostMethodEntry-AgeNormalCostMethodActuarialAssumptions:DiscountRate7.15%Inflation2.625%PayrollGrowth2.875%SalaryIncreaseVariesbyEntryAgeandServiceInvestmentRateof7%NetofPensionPlanInvestmentandAdministrativeReturnExpenses;includesInflationMortality(1)DerivedusingCaIPERSmembershipdataforallfunds(1)ThemortalitytableusedwasdevelopedbasedonCaIPERS’specificdata.TheTableincludes15yearsofmortalityimprovementsusing90percentofScaleMP2016publishedbytheSocietyofActuaries.Formoredetailsonthistable,pleaserefertothe2017experiencestudyreport.AllunderlyingmortalityassumptionsandallotheractuarialassumptionsusedintheJune30,2018valuationwerebasedonresultsofaDecember2017CaIPERSExperienceStudyandReviewofActuarialAssumptions.FurtherdetailsoftheExperienceStudycanbefoundontheCaIPERSwebsite.Page37 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)B.PENSIONLIABILITIES,PENSIONEXPENSESANDDEFERREDOUTFLOWS/INFLOWSOFRESOURCESRELATEDTOPENSIONS(Continued)DiscountRate-ThediscountrateusedtomeasurethetotalpensionliabilityasofDecember31,2018was7.15%.Todeterminewhetherthemunicipalbondrateshouldbeusedinthecalculationofadiscountrateforeachplan,CaIPERSstresstestedplansthatwouldmostlikelyresultinadiscountratethatwouldbedifferentfromtheactuariallyassumeddiscountrate.Basedonthetesting,noneofthetestedplansrunoutofassets.Therefore,thecurrent7.15%discountrateusedisadequateandtheuseofthemunicipalbondratecalculationisnotnecessary.Thelongtermexpecteddiscountrateof7.15%willbeappliedtoallplansinthePublicEmployeesRetirementFund(PERF).ThestresstestresultsarepresentedinadetailedreportthatcanbeobtainedfromtheCaIPERSwebsite.Thelong-termexpectedrateofreturnonpensionplaninvestmentswasdeterminedusingabuilding-blockmethodinwhichbest-estimaterangesofexpectedfuturerealrateofreturn(expectedreturns,netofpensionplaninvestmentexpenseandinflation)aredevelopedforeachmajorassetclass.Indeterminingthelong-termexpectedrateofreturn,CaIPERStookintoaccountbothshort-termandlong-termmarketreturnexpectationsaswellastheexpectedpensionfundcashflows.Usinghistoricalreturnsofallthefunds’assetclasses,expectedcompoundreturnswerecalculatedovertheshort-term(first10years)andthelongterm(11-I-years)usingabuilding-blockapproach.Usingtheexpectednominalreturnsforbothshort-termandlong-term,thepresentvalueofbenefitswascalculatedforeachfund.Theexpectedrateofreturnwassetbycalculatingthesingleequivalentexpectedreturnthatarrivedatthesamepresentvalueofbenefitsforcashflowsastheonecalculatedusingbothshort-termandlong-termreturns.Theexpectedrateofreturnwasthensetequivalenttothesingleequivalentratecalculatedaboveandroundeddowntothenearestonequarterofonepercent.Thetablebelowreflectsthelong-termexpectedrealrateofreturnbyassetclass.Therateofreturnwascalculatedusingthecapitalmarketassumptionsappliedtodeterminethediscountrateandassetallocation.ThetargetallocationshownbelowwasadoptedbyCaIPERS’BoardeffectiveonJuly1,2018.NewStrategicAssetClassAllocationGlobalEquity50.0%PrivateEquity8.0%FixedIncome28.0%RealAssets13.0%Liquidity1.0%Total100.0%Page38 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)B.PENSIONLIABILITIES,PENSIONEXPENSESANDDEFERREDOUTFLOWS/INFLOWSOFRESOURCESRELATEDTOPENSIONS(Continued)SensitivityoftheProportionateShareoftheNetPensionLiabilitytoChangesintheDiscountE.@&-ThefollowingpresentstheDistrict’sproportionateshareofthenetpensionliabilityforeachPlan,calculatedusingthediscountrateforeachPlan,aswellaswhattheDistrict’sproportionateshareofthenetpensionliabilitywouldbeifitwerecalculatedusingadiscountratethatisI%pointlowerorI%pointhigherthanthecurrentrate:MiscellaneousMeasurementDateJune30,20181%Decrease6.15%NetPensionLiability$18,415,604CurrentDiscountRate7.15%NetPensionLiability$11,742,1371%lncrease8.15%NetPensionLiability$6,233,300PensionPlanFiduciaryNetPosition—Detailedinformationabouteachpensionplan’sfiduciarynetpositionisavailableintheseparatelyissuedCaIPERSfinancialreports.C.PAYABLETOTHEPENSIONPLANAtDecember31,2018and2017respectivelytheDistrictdidnotreportapayableforoutstandingrequiredcontributionstothepensionplan.D.DEFERREDCOMPENSATIONPLANTheDistrictmaintainstwodeferredcompensationplans:a401(a)anda457plan,(thePlans)forcertainqualifiedemployees.TheDistrictmatches6.78%ofeligibleemployeecontributions.In2018thetotalmatchwas$137,045comparedto$106,332in2017.TheDistricthasnoliabilityforlossesunderthePlans,butdoeshavethedutyofduecarethatwouldberequiredofanordinaryprudentinvestor.TheDistricthasnotreflectedthePlans’assetsandcorrespondingliabilities(ifany)ontheaccompanyingStatementofNetPosition.Page39 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)E.OTHERPOSTEMPLOYMENTBENEFITS(OPEB)GeneralInformation-AsdiscussedinNote2,beginningwiththeyearendedDecember31,2018,theDistrictadoptedtheprovisionsofGASBStatementNo.75,AccountingandFinancialReportingforPostemploymentBenefitsOtherThanPensions.TheDistrict’sretireeBenefitsPlan(thePlan)recognizesbenefitpaymentswhendueandpayableinaccordancewiththebenefitterms.ThePlan’sfiduciarynetpositionhasbeendeterminedonthesamebasisasisreportedbythePlanincalculatingthefiduciarynetposition(NetOPEBLiability),deferredoutflowsofresourcesanddeferredinflowsofresourceandassociatedOPEBexpense.TheDistrictadministersasingle-employerdefined-benefitpost-employmenthealthcareplan.Dependentsareeligibletoenroll.BenefitsProvided—RetireesareeligibleforaDistrictcontributiontowardspremiumsfortheretireehealthplans(s)iftheyretireatage50+andhaveI0+yearsofDistrictservice.ThemaximumDistrictcontributionisbasedonyearsofservice.TheRetireeiseligiblefor50%ofthefollowingmaximums,withaminimumofI0yearsofservice,plus5%foreachyearofserviceoverI0years:$475perpersonenrolledintheplan,ifnoteligibleforMedicare,and$375perpersonenrolled,ifeligibleforMedicare.EmployeesCovered—AtJune30,2017(thecensusdate),thebenefittermscoveredthefollowingemployees:CategoryCountActkeEmployees:68Inacth.eEmployees,spouses,orbeneficiariescurrentlyreceiAngpayment(s):53Inacti’veemployeesentitledtobutnotyetrecehAngbenefitpayment(s):0Total121Contributions—TheDistrictpaysbenefitsastheycomedueandcontributesadditionallytotheTrustannually.TheDistrict’sannualcontributiontotheTrustasofDecember31,2018was$100,000.NetOPEBLiability—TheDistrict’snetOPEBliabilitywasmeasuredasofDecember31,2017,andthetotalOPEBliabilityusedtocalculatethenetOPEBliabilitywasdeterminedbyanactuarialvaluationasofDecember31,2017.ActuarialAssumptionsThetotalOPEBLiabilityintheDecember31,2017actuarialvaluationwasdeterminedusingthefollowingactuarialassumptions,appliedtoallperiodsincludedinthemeasurement,unlessotherwisespecified:Inflation:2.17%SalaryIncreases:Basesalaryincreasesinyearone:2.875%.Basesalaryincreasesinsubsequentyears:2.85%.Additionalmerit-basedincreasesbasedonCaIPERS.InvestmentRateofReturn:7.00%Healthcarecosttrendrates:7.00%inthefirstyear,trendingdownto3.84%over58yearsMortalityRates:BasedonCaIPERStablesPage40 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember312018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)E.OTHERPOSTEMPLOYMENTBENEFITS(OPEB)(Continued)ActuarialAssumptions(Continued)ThediscountrateusedtomeasurethetotalOPEBliabilitywas7.00%.TheprojectionofcashflowsusedtodeterminethediscountrateassumedthattheDistrictcontributionwillbemadeatratesequaltotheactuariallydeterminedcontributionrates.Basedonthoseassumptions,theOPEBplan’sfiduciarynetpositionwasprojectedtocoverallfutureOPEBpayments.Therefore,thediscountratewassetequaltothelong-termexpectedrateofreturn.ChangesintheNetOPEBLiability—ThechangesinthenetOPEBliabilityforthePlanareasfollows:Increases(Decreases)TotalOPEBPlanFiduciaryNetOPEBLiabilityNetPositionLiability(a)(b)(c)=(a)-(b)BalanceasofReportDateDecember31,2017$6,465,503$1,997,471$4,468,032Changesfortheyear:ServiceCost170,473-170,473Interest448,374-448,374DifferencesbetweenExpectedand---ActualExperience---Contributions---Employer-District’sContribution-256,280(256,280)Employer-ImplicitSubsidy-254,930(254,930)NetInvestmentIncome-167,459(167,459)BenefitPayments,IncludingRefundsofEmployeeContributions(214,280)(214,280)-ImplicityRateSubsidyFulfilled(254,930)(254,930)-AdministrativeExpenses-(519)519NetChanges149,637208,940(59,303)BalanceasofReportDateDecember31,2018$6,615,140$2,206,411$4,408,729SensitivityofthenetOPEBliabilitytochangesinthediscountrate-ThenetOPEBliabilityoftheDistrict,aswellaswhattheDistrict’snetOPEBliabilitywouldbeifitwerecalculatedusingadiscountratethatisonepercentagepointlower(6.00%oronepercentagepointhigher(8.00%)isasfollows:1%DecreaseDiscountRate1%Increase6.00%7.00%8.00%NetOPEBLiability$4,995,687$4,408,729$3,902,103Page41 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE9—EMPLOYEEBENEFITPLANS(Continued)E.OTHERPOSTEMPLOYMENTBENEFITS(OPEB)(Continued)SensitivityofthenetOPEBliabilitytochangesinthehealthcarecosttrendrates-ThenetOPEBliabilityoftheDistrict,aswellaswhattheDistrict’snetOPEBliabilitywouldbeifitwerecalculatedusinghealthcarecosttrendratesthatareonepercentagepointlower(6.00%)oronepercentagepointhigher(8.00%)thancurrenthealthcarecosttrendratesisasfollows:1%DecreaseDiscountRate1%Increase6.00%7.00%8.00%Decreasingto2.84%3.84%4.84%$4,122,339$4,408,729$4,736,191OPEBPlanFiduciaryNetPosition—CERBTissuesapubliclyavailablefinancialreportfortheoverallOPEBplan’sfiduciarynetpositionwhichmaybeobtainedfromCaIPERSatP0Box942709,Sacramento,Ca.94229-2709.OPEBExpenseandDeferredInflowsandOutflowsofResourcesRelatedtoOPEB—FortheyearendedDecember31,2018,theDistrictrecognizedanOPEBexpenseof$466,976.AtDecember31,2018,theDistrictreporteddeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtoOPEBfromthefollowingsources:DeferredOutflowsofDeferredInflowsofDifferencesbetweenexpectedandactualexperienceChangesofassumptionsNetDifferencebetweenProjectedandActualEarningsonOPEBPlanInvestmentsDistrictcontributionsmadesubsequenttothemeasurementdateTotalResources344,700$344,700Resources(15,069)($15,069)The$344,700reportedasdeferredoutflowsofresourcesrelatedtocontributionssubsequenttotheDecember31,2017measurementdatewillberecognizedasareductionofthenetOPEBliabilityduringthefiscalyearendingDecember31,2019.OtheramountsreportedasdeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtoOPEBwillberecognizedinOPEBexpenseasfollows:December31Amount2019($3,767)2020($3,767)($3,767)($3,768)($15,069)YearEndedNetOPEBLiabilityDecreasingtoDecreasingto20212022Page42 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEI0—SELFFUNDEDINSURANCETheDistricthasaself-fundedvisioninsuranceprogramandclaimswereprocessedbyandonbehalfoftheDistrict.TheDistrictdidnotmaintainaclaimliability;ratherclaimswereexpensedaspaid.Theamountofclaimspaidforeachofthepastthreeyearshavenotbeenmaterial.NOTEII—SEGMENTDISCLOSURETheDistricthasissuedrevenuebondstofinanceelectricandwaterdistributionfacilities.TheDistrictalsoissuedspecialtaxbondssecuredbytaxrevenuesfromMello-RoosCommunityFacilitiesDistricts.Eachprojecthasanexternalrequirementtobereportedseparately,andinvestorsintherevenuebondsandspecialtaxbondsrelysolelyontherevenuegeneratedbytheindividualprojectsforrepayment.SummaryfinancialinformationforeachprojectispresentedonthefollowingpagesfortheyearsendingDecember31,2018and2017.STATEMENTOFNETPOSITIONASSETSANDDEFERREDDUTFLDWSDFRESOURCESElectricCurrentassets$25,903,974Non-currentassets:Capitalassets,net53,535,186Restrictedassets-Otherlongtermassets311,157TotalNoncurrentAssets53,846,343DeferredoutflowsofresourcesGraysOldWaterCrossingGreenwood$9,424,443$9,098,052$1,045,803TOTALASSETSANDDEFERREDOUTFLOVI$81,424,493$91,707,377$9,098,052$1,045,803$-$183,275,725OFRESOURCESLIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIONCurrentliabilitiesNon-currentLiabilitiesLong-termdebt,netofcurrentportionNetpensionliabilityOPEBliabilityUnearnedrevenuesTotalNoncurrentLiabilitiesTotalLiabilitiesDeferredinflowsofresourcesPensionOPE6TotalDeferredInflowsofResourcesNetPositionNetinvestmentincapitalassetsRestrictedfordebtserviceUnrestrictedTotalNetPosition146,75897,8399,0416,028155,799103,867TOTALLIABILITIES,DEFERREDINFLOWS$81,424,494$91,707,377$9,098,052$1,045,803OFRESOURCESANDNETPOSITION-244,597-15,069-259,666$183,275,72676,638,3641,753,272,294,81080,686,449PensionOPEBUnamortizedlossonrefundingUnamortizedredemptionpremiumTotalDeferredOutflowsofResourcesEliminationsGrandTotal$-$45,472,2721,371,944914,629-206,820137,880--543,976---95,412--1,674,1761,596,485-130,173,5501,73,2752,605,967134,532,7922,286,573344,700543,97695,4123,270,661$5,114,244$2,794,434$1,327,047$498,896$-$9,734,6212,592,5997,045,2822,645,2373,41,28815,734,40620,848,65018,872,5564,696,855I763,4921,503,65326,836,55629,630,99059,647,06211,742,1374,408,7296,569,63282,367,56092,102,18129,388,3078,793,6001,252,844361,84730,641,1519,155,44731,968,1989,654,343(30,163,307)(9,164,800)2,850,263-4,442,898556,260(22,870,146)(8,608,540)50,048,0401,777,6938,594,31260,420,04556,123,7095,114,785734,02661,972,52066,843,6429,742,74114,327,49690,913,879Page43 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEII—SEGMENTDISCLOSURE(Continued)ASSETSANDDEFERREDOUTFLOWSOFRESOURCESElectricCurrentassets$23,717,604Non-currentassets:Capitalassets,net48,257,502Restrictedassets-Otherlong-termassets843,086TotalNoncurrentAssets49,100,588DeferredoutflowsofresourcesPension2,190,835UnamortizedlossonrefundingUnamortizedredemptionpremium___________December31,2017GraysOldWaterCrossingGreenwood$10,085,811$8,932,129$1,073,922EliminationsGrandTotal$-$43,809,466-123,114,074-1,818,513-3,848,264-128,780,851TOTALASSETSANDDEFERREDOUTFLOIfl$75,131,700$91,803,408$8,932,129$1,073,922$-$176,941,159OFRESOURCESLIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIONCurrentliabilitiesNon-currentLiabilitiesLong-termdebt,netofcurrentportionNetpensionliabilityOPEBliabilityUnearnedrevenuesTotalNoncurrentLiabilitiesTotalLiabilitiesDeferredinflowsofresourcesPensionTotalDeferredInflowsofResourcesNetPositionNetinvestmentincapitalassetsRestrictedfordebtserviceUnrestrictedTotalNetPosition30,258,1029,164,800________________________1,241,083341,243___ ______________ ___ ___ _31,499,1859,506,043__ _________ _ ___ ___ ___ ___32,754,5239,976,347331,159220,773--331,159220,773--43,50184452,216,044(30,948,102)(9,502,700)1,842,5534,576,7802,869,617-10,762,4664,682,7754,256,091600,27556,106,86361475,599(23,822,394)(8,902,425)-55,267,086-9,288,950-20,301,607-84,857,643TOTALLIABILITIES,DEFERREDINFLOWS$75,131,700$91,803,408$8,932,129$1,073,922$-$176,941,159OFRESOURCESANDNETPOSITION74,856,5721,818,513_______ ___ _3,005,178___ ___ ___ ___79,680,2631,460,556576,778122,673-2,313,5082,037,3343,651,391576,778122,6734,350,842$4,702,463$2,742,557$1,255,338$470,304$-$9,170,6623,523,7457,185,392669,9412,612,13713,991,21518,693,67821,085,6504,790,263446,6271041,93927,364,47930,107,03664,032,29711,97,6551,116,5685,236,40282,360,92291531,584551,932551,932Page44 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEII—SEGMENTDISCLOSURE(Continued)STATEMENTSOFREVENUE,EXPENSESANDCHANGESINNETPOSITIONOperatingRevenuesSalestoconsumersOtheroperatingrevenuesOperatingexpensesOepreciationNon-operatingrevenues(expenses)__________________________________________________________Income(loss)beforecapital&othercontributionsCap i ta l contr ibu t ions,net________________ __ __ __ __ __ ____________________ _______ _____CHANGEINNETPOSIflONNetPosition,BeginningLess,Restatementforchangeinaccountingperiod56,106,86361,475,599(2,010,879)(1,340,586)(23,822,394)(8,902,425)-84,857,643(3,31,465)(23,822,394)(8,902,425)$(22,870,146)$(8,608,540)$-YearendedDecember31.2017OperatingRevenuesSalestoconsumersOtheroperatingrevenuesOperatingexpensesDepreciationNon-operatingrevenues(expenses)Income(loss)beforecapital&othercontributionsCapitalcontributions,netCHANGEINNETPOSIflONNetPosition,BeginningNETPOSITION,ENDINGGrandTotal$34,462,1465,585,82230,883,1066,531,640879,4513,12,6732,096,8285,609,501YearendedDecember31,2018Gray’sOldCrossingGreenwoodElectricWaterEliminationsGrandTotal$23,045,437$12,440,975$-$-$-$35,486,4123,454,838429,540--(1,685,773)2,198,605(20,236,775)(8,662,224)--1,685,773(27,213,226)(2,730,525)(4,148,335)---(6,878,860)344,897(428,980)952,248293,8851,162,0503,877,872(369,024)952,248293,885-4,754,9812,446,1892,206,531---4,652,7206,324,0611,837,507952,248293,885-9,407,701NetPosition,BeginningofYear,asadjusted54,095,98460,135,013NETPOSITION,ENDING$60,420,045$61,972,52081,S06,178$90,913,879Gray’sOldElectric$22,660,2585,046,86222,108,4S42,624,534140,3043,114,436Water$11,801,888$-$538,960-8,774,652-3,907,106-(517,830)997,280(858,740)997,280CrossingGreenwoodEliminations-(1,712,616)1,712,6161,254,137842,691-4,368,573(16,049)997,28051738,29061491648(24,819,674)$56,106,863$61,475,599$(23,822,394)259,697259,697259,697(9,162,122)S(8,902,425)__________________79,248,142$-$84,857,643Page45 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTEII—SEGMENTDISCLOSURE(Continued)STATEMENTSOFCASHFLOWSNETCASHPROVIDEDBY(USEDIN)OperatingactivitiesNoncapitalfinancingactivitiesCapitalandrelatedfinancingactivitiesInvestingactivitiesNetincrease(decrease)incashandcashequivalentsCashandCashEquivalents,BeginningCASHANDCASHEQUIVALENTS,ENDINGNETCASHPROVIDEDBY(USEDIN)OperatingactivitiesNoncapitalfinancingactivitiesCapitalandrelatedfinancingactivitiesInvestingactivitiesNetincrease(decrease)incashandcashequivalentsCashandCashEquivalents,BeginningCASHANDCASHEQUIVALENTS,ENDING$6,624,835(467,5g0)(2,328,476)181,261$10,170,585(467,590)(5,900,716)531,551NOTE12-MARTISVALLEYGROUNDWATERMANAGEMENTEFFORTSTheMartisValleyaquiferunderliesabout35,000acresinbothPlacerandNevadacounties,neartheTownofTruckee.Itisthemaingroundwatersupplyfornumerouspublicandprivateentities.Thisareahasseensignificantgrowthinthelastfewdecadeswithmoreplannedforthefuture.Maintaininganadequatewatersupplyandprotectingwaterqualityarecriticalfortheregion’sfuture.TheTruckeeDonnerPublicUtilityDistrict(TDPUD),NorthstarCommunityServicesDistrict(NCSD)andPlacerCountyWaterAgency(PCWA)arethethreeprimarypublicwateragencieswithjurisdictionintheMartisValleyBasin.Together,theTDPUD,NCSDandPCWA(PartnershipAgencies)partneredtosubmitagroundwatermanagementplanandtohelpdevelopagroundwatermodelfortheMartisValleybasin.YearendedDecember31,2018Gray’sOldElectricWaterCrossingGreenwoodEliminationsGrandTotal$8,346,474$4,491,025$-$-$-$12,837,499(1,429,464)----(1,429,464)(5,164,526)(5,021,798)(244,480)(92,093)-(10,522,897)350,522310,34857,3378,390-726,5972,103,006(220,425)(187,143)(83,703)-1,611,73519,449,8567,603,5263,164,733376,669-30,594,784$21,552,862$7,383,101$2,977,590$292,966$-$32,206,519YearendedDecember31,2017ElectricWater$3,545,750$-$Gray’sOld____________CrossingGreenwoodEliminations(3,723,773)213,162(61,629)-295,97550,8593,456--$GrandTotal4,010,030117,952264,021(58,173)-4,333,83015,439,8267,485,5742,900,712434,842-26,260,954$19,449,856$7,603,526$3,164,733$376,669$-$30,594,784Page46 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE12—MARTISVALLEYGROUNDWATERMANAGEMENTEFFORTS(Continued)TheMartisValleyGroundwaterManagementPlan(GMP)waspreparedin2013toreflectcurrentwaterresourcesplanningintheregionandtoincorporatethelatestinformationandunderstandingoftheunderlyinggroundwaterbasin.Thiscollaborativeeffortprovidedtheguidancenecessarytoaligngroundwaterpolicy.Inadditiontothegroundwatermanagementplan,acomputermodelofthegroundwaterbasinwasdevelopedbytheDesertResearchInstitute,whichincorporatedavailabledataandenhancedunderstandingofthegroundwaterbasin.AclimatechangemodelingcomponentwaspartoftheoverallFederalstudyeffort.PartneragencieseachadoptedtheGroundwaterManagementPlan(GMP)inFebruary2012andthemodelandassociatedreportwascompletedin2015.Thetotalcostoftheprojectwasapproximately$1,000,000,whichincludesfederalfundingofapproximately$500,000fromtheU.S.BureauofReclamationand$250,000fromtheLawrenceLivermoreNationalLaboratory;andcontributionsof$150,000fromTDPUDand$100,000fromtheothermembersofthePartnershipAgencies.Inmid2016,theCaliforniaSustainableGroundwaterManagementActof2014(SGMA)tookeffectforwhichtheDistrictwasthesubmittingagencyofaSGMAAlternateSubmittalinDecember,2016onbehalfoftheTownofTruckee,PlacerCounty,NevadaCounty,PCWA,andNorthstarCSD(LocalSGMAAgencies).TheSGMAAlternativeSubmittalwasintendedtocomplywiththenewregulations.TherewasanadoptedMOAamongstthesixlocalagenciesforthiscomplianceprojectwhichcoversthetimeperiodforpreparationoftheSGMAAlternativeSubmittal,possibleconditionalacceptanceoftheplanbyDWR,andsubmittalofafirst-yearannualreport.DWRhadtwoyearsbystatutetoreviewtheSGMAAlternativeSubmittal.Earlierin2018,DWRwasrequiredtoundergogroundwaterbasinprioritizationwhichisthebasisforcomplianceobligationforSGMA.TheMVGBhadpreviouslybeenprioritizedasmediumpriority.DWR’sfinalDeterminationwastore-prioritizeMVGBtolowpriority.Thiswasasignificantactthatresultsinadirectreductioninregulatoryburdenandfutureregulatorycoststhatwouldberequiredforgroundwatermanagement.ToensurecontinuedstewardshipandmanagementoftheMVGBtheDistrictanditslocalpartnershaveagreedtoreturntothe2013GMPframeworkwhichwasneverfullyimplementedduetoSGMA.NOTEI3—CLAIMSANDJUDGMENTSFromtimetotime,theutilityispartytovariouspendingclaimsandlegalproceedings.Althoughtheoutcomeofsuchmatterscannotbeforecastedwithcertainty,itistheopinionofmanagementandtheutility’slegalcounselthatthelikelihoodisremotethatanysuchclaimsorproceedingswillhaveamaterialadverseeffectontheutility’sfinancialpositionorresultsofoperations.NOTE14—RISKMANAGEMENTTheutilityisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,ordestructionofassets;errorsandomissions;workerscompensation;andhealthcareofitsemployees.Theserisksarecoveredthroughthepurchaseofcommercialinsurance,withminimaldeductibles.Settledclaimshavenotexceededthecommercialliabilityinanyofthepastthreeyears.Therewerenosignificantreductionsincoveragecomparedtotheprioryear.Page47 TRUCKEEDONNERPUBLICUTILITYDISTRICTNOTESTOFINANCIALSTATEMENTSDecember31,2018and2017NOTE15-CHANGEINACCOUNTINGPRINCIPLEAsaresultofimplementingGASBStatementNo.75,theDistricthasrestatedbeginningnetpositionasofJanuary1,2018by$3,351,465to$81,506,178asfollows:DescriptionofRestatementAmountDecreaseLiabilitiesandincreaseNetPositionbyremoAngOPEBliabilityestablishedfromGASBStatementNo.45compliance$(1,116,568)IncreaseLiabilitiesanddecreaseNetPositionbyaddingintheNetOPEBLiabilitybeginningbalanceasofJanuary1,20184,468,033TotalRestatementActity$3,351,465Page48 REQUIREDSUPPLEMENTARYINFORMATION TRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017COSTSHARINGDEFINEDBENEFITPENSIONPLANSScheduleoftheDistrictsProportionateShareoftheNetPensionLiabilityCOStSharingDefinedBenefitPlansAsofJune30LastTenYears*20182017201620152014PortionofNetPensionLiability0.31157%0.30379%0.29837%029209%0.09982%ProportionateShareofTheNetPensionLiability$11,742,137$11,975,655$10,250,329$8,013,400$6,210,985Covered-EmployeePayroll$7,375,933$7,108,563$6,670,248$6,162,431$6,278,545ProporationateShareoftheNetPensionLiabilityasPercentageofCoveredPayroll159.20%168.47%153.67%130.04%98.92%Plan’sFidicuiaryNetPosition$29,308,590$27,244,095$30,950,578$30,725,516$30,386,101PlanFiduciaryNetPositionasapercentageoftheTotalPensionLiability75.26%73.31%75.12%79.31%89.17%*Fiscalyear2014wasthe1styearofimplementation,thereforeonlyfiveyearsareshownPage50 ContractuallyRequiredContribution(ActuariallyDetermined)ContributionsinRelationtotheActuariallyDeterminedContributionsContributiondeficiency(excess)Covered-EmployeePayrollContributionsasapercentageofcovered-employeepayrollTRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017COSTSHARINGDEFINEDBENEFITPENSIONPLANS-CONTINUEDScheduleofContributionsCostSharingDefinedBenefitPlansDecember31LastTenYears*20182017$1,246,476$1,138,758$1,246,476$0201620152014$1,011,908$950,147$943,118$1,138,758($0)$7,375,933$7,108,563$1,048,897($36,989)$6,670,248*Fiscalyear2014wasthe1styearofimplementation,thereforeonlyfiveyearsareshown$949,634$513$6,162,43115%17%16%16%$943,118$0$6,278,54515%Page51 TRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017ScheduleofChangesinTheDistrict’sTotalOPEBLiabilityandRelatedRatiosMeasurementDate:December31,2017ReportDate:December31,2018TotalOPEBLiabilityServiceCost$170,473Interest448,374BenefitPayments(214,280)ImplicitRateSubsidyFulfilled(254,930)NetChangeinTotalOPEBLiability$149,637TotalOPEBLiability-BeginningofYear6,465,503TotalOPEBLiability-EndofYear(a)$6615140PlanFiduciaryNetPositionNetInvestmentIncome$167,459ContributionsEmployer-District’sContribution256,280Employer-ImplicitySubsidy254,930BenefitPayments,IncludingRefundsofEmployeeContributions(214,280)ImplicitRateSubsidyFulfilled(254,930)AdministrativeExpense(519)NetChangeinPlanFiduciaryNetPosition208,940PlanFiduciaryNetPosition-BeginningofYear1,997,471PlanFiduciaryNetPosition-EndofYear(b)2,206,411DistrictsNetOPEBliability-EndofYear(a)-(b)$4,408,729PlanFiduciaryNetPositionasaPercentageoftheTotalOPEBLiability3335%CoveredEmployeePayroll$7,202,518DistrictsNetOPEBLiabilityasaPercentageofCovered-EmployeePayroll61.21%NotestoSchedule:TheDistrictadoptedGASB75forthefiscalYearEndingDecember312018Page52 TRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017OtherPostEmploymentBenefits-ScheduleofInvestmentReturnsReportDate:December312O18AnnualMoney-WeightedRateofReturn,NetofInvestmentExpense8.30%Theannualmoney-weightedrateofreturn,netofinvestmentexpenses,isthenetinvestmentincomefortheyeardividedbytheaveragenetpositonfortheyear(lessinvestmentexpenses.)NotestoSchedule:TheDistrictadoptedGASB75forthefiscalYearEndingDecember312018Page53 TRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017OtherPostEmploymentBenefits-ScheduleofContributionsReportDate:December31,2018ActuariallyDeterminedContribution$569,210Less:ActualContributions511,210ContributionDeficiency$58,000Covered-EmployeePayroll$7,202,518ContributionsasaPercentageofCovered-EmployeePayrollNotestoSchedule:TheDistrictadoptedGASB75forthefiscalYearEndingDecember31,20187.10%Page54 TRUCKEEDONNERPUBLICUTILITYDISTRICTREQUIREDSUPPLEMENTARYINFORMATIONDecember31,2018and2017OtherPostEmploymentBenefits-ActuarialAssumptionsActuaraImethodsandassumptionsusedtosettheactuaraIIydeterminedcontributionsforfiscalyear2018werefromtheJune30,2017valuation.Methodsandassumptionsusedtodeterminecontributions:ValuationDateActuarialCostMethodAmortizationMethodAmortizationPeriodInflationAssumedPayrollGrowthYear1AssumedPayrollGrowthYear2HealthcareTrendRatesRateofReturnonAssetsMortalityRateRetirementRatesJune30,2017Entryagenormal,levelpercentofpayClosedperiod,levelpercentofpay20years2.75%2.875%2.875%7.00%,trendingdownto3.84%7.00%CaIPERSRatesutilizingthedecrementtableMortandDisbRates_PAMiscfromtheCaIPERSOPEBassumptionmodelrevisedDecember20,2017.CaIPERSRatesbasedonCaIPERSExperienceStudyfortheperiodfrom1997to2014.Page55 SUPPLEMENTALINFORMATION TRUCKEEDONNERPUBLICUTILITYDISTRICTSUPPLEMENTARYINFORMATIONDecember31,2018and2017OperatingDesignatedRestrictedTotalFundsAccountsreceivable,netUnbilledrevenuesAccruedinterestreceivableMaterialsandsuppliesPrepaidexpensesOtherTotalCurrentAssets$8,084,64111,625,2971,779,65721,489,5951,117,4782,079,16649,451711,111400,75556,41825,903,974$1,518,092$52,1592,332,953-3,528,6682,925,4317,379,7132,977,590650,1706,119,822827,906-48,654640173,127-284,061-60,812-9,424,4439,098,052$-$9,947,858-13,958,250-8,233,756-32,139,864-8,637,436-2,907,072-101,616-884,238-684,816-117,230-45,472,272NON-CURRENTASSETSOtherNon-CurrentAssetsRestrictedfundsSpecialassessmentsreceivableOtherTotalOtherNon-CurrentAssets-1,753,275---2,294,810--311,157---311,1574,048,085---1,753,275-2,294,810-311,157-4,359,242DEFERREDOUTFLOWSOFRESOURCESPensionOPEBUnamortizedlossonrefundingUnamortizedredemptionpremiumTotaldeferredoutflowsofresources-2,286,573344,700-543,976-95,412-3,270,661CAPITALASSETSUtilityplantAccumulateddepreciationConstructionworkinprogressTotalcapitalassets76,222,195120,874,384(27,171103)(46,921,740)4,484,0942,685,72053,535,18676,638,364-197,096,579-(74,092,843)-7,169,814-130,173,550TOTALASSETSANDDEFERREDOUTFLOWSOFRESOURCESs81,424,494$91,707,377$9,098,052$1,045,803$-S183,275,726CONSOLIDATINGSTATEMENTOFNETPOSITIONAsofDecember31,2018ASSETSANDDEFERREDOUTFLOWSOFRESOURCESCURRENTASSETSFundsComponentUnitsElectricODeratlonsWaterOoerationsGray’sCrossinoOldGreenwoodEliminationsTotalss292,966292,966749,9662,8711,045,8031,371,944206,82095,4121,674,176914,629137,880543,9761,96,48SPage57 TRUCKEEDONNERPUBLICUTILITYDISTRICTSUPPLEMENTARYINFORMATIONDecember31,2018and2017ComDonentUnitsNETPOSITIONANOLIABILITIESCURRENTLIABILITIESOtherliabilitiesAccountspayableCustomerdepositsOtherTotalotherliabilitiesCurrentliabilitiespayablefromrestrictedassets:Currentportionoflong-termdebtAccruedinterestpayableTotalCurrentLiabilitiesPayablefromRestrictedAssetsTotalCurrentLiabilties2,556,0007,045,2822,645,23736,5993,41,288I5,734,40620,848,6501,252,844361,84730,641,1519,155,44731,968,1989,654,343-59,610,463-11,742,137-4,408,729-36,599-6,569,632-82,367,560-92,102,181(9,164,800)-66,843,642--9,742,741556,260-14,327,496(8,608,540)-90,913,879ElectricOperationsWaterOperationsGray’sCrossingOldGreenwoodEliminations$3,109,764$64,174$361,33787,631710,659324,5764,181,760476,381Totals931,1461,338932,4845,114,244-$-$3,173,938-448,968-1,035,235-4,658,141-4,263,421-813,059-5,076,480-9,734,621775,000371,200552,047127,6961,327,047498,8961,327,047498,89629,388,3078,793,6002,186,07131,9782,318,0532,794,43418,872,64,696,8551,763,4921,03,6326,836,55629,630,990NON-CURRENTLIABILITIESLong-termdebt,netofdiscountsandpremiumsNetpensionliabilityOPEBliabilityInstallmentloansUnearnedrevenuesTotalnon-currentliabilitiesTotalLiabilitiesDEFERREDINFLOWSOFRESOURCESPensionOPEBTotaldeferredinflowsofresourcesNETPOSITIONNetinvestmentincapitalassetsRestrictedfordebtserviceUnrestrictedTotalNetPosition146,75897,839---244,5979,0416,028---15,069155,799103,867---259,66650,048,0401,777,6938,594,31260,420,04556,123,709(30,163,307)5,114,7852,850,263734,0264,442,89861,972,520(22,870,146)TOTALLIABILITIES,DEFERREDINFLOWSOFRESOURCESANDNETPOSITIC$81,424,494$91,707,377$9,098,052$1,045,803$-$183,275,726Page58